The major project for this course will consist of you constructing a portfolio of stocks. Your report should contain professional terminology, as well as proper grammar and spelling. Please don’t CUT and PASTE from websites. You should write in a professional manner, except in the reflective piece of the portfolio. Otherwise, all items should be parsed as if they were going to be reviewed by an executive at a financial institution.
The Stock Portfolio Project will consist of the following:
Create a portfolio of securities using one of the investment strategies below or another that you ‘create’. You can include in this portfolio any of the ‘allowed’ securities and can allocate your $100,000 in any way that you would like:
Biggest and Best
Specific Industry—e.g., all tech, healthcare, etc.
Recommended—e.g., from Motley Fool or other sites
Random ‘dart’ throw
Follow the Leader—look at a successful investor and ‘mirror’ their picks
Describe and explain why you made the choices you did and what you would expect to learn from this initial portfolio position.
You can make changes to this portfolio—i.e., adding, subtracting stocks, bonds, etc. You just need to record the changes you made.
Track the weekly performance of the securities in your portfolio, determining changes in price and return for individual securities. Also, determine the overall change in your portfolio’s value and your total return for each week.
For each week, monitor changes that could impact and/or help explain your portfolio’s performance. This information should include, but does not need to be limited to, the following:
Performance of the overall market indices for the week—e.g., S&P 500, Dow Jones Industrial Average, NASDAQ, and other indices that might relate to securities in your portfolio, bond market, etc.
Major development in the U.S. macro-economy
Major developments internationally
Any specific industry factors that may impact your investments
Psychology of the market and country in general
Buy and sell securities as you would like over the next six weeks, but remain ‘true’ to your investing philosophy. When you make changes, describe the changes you made for that week and explain your investment approach—i.e., why you made the changes.