Sam and Judy Part4 - Essay Example


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Sam and Judy Part4

Sam and Judy think they can win the game by being hard on the offensive, and are not willing to avoid too much over a short period. They are also interested in accumulating significant wealth in the future. Both investors are willing to wait for any duration of time to get their rewards to recoup their short term losses. The only problem is that they also have little income to that they can easily contribute to their portfolio m over time unless they receive from their parents or well-wishers. The S & P500 does not scare them, as they are also willing to lose a portion of their money even if the market is going bellow S&P 500. This is also based on their belief that they can also profit of the market stats going up. While the duo is into investment, they are interested in making more money than preventing capital loss. Based on their choice of the portfolio that produces higher capital gains distribution and modest annual income yields, they moderately aggressive investors. The two will conveniently achieve long term investment returns that are higher than inflation and other taxes An optimal assets allocation is based on the age of Judy and Sam, their ability to tolerate risks, the market condition and their income. The duo are relatively young, therefore, they need risky assets that promise much in terms of returns. Additionally, their capital is lamp sum and may not be increased easily. ...
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Sam and Judy are essentially Moderately Aggressive investors. This kind of investment risk tolerance is based on the they can tolerate fluctuations of the downside market, the way they think about the risks involved in investments and the potential profitability. Sam and Judy would like to outperform other equally weighted indices if the market is up. …
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