Investment Strategies and Portfolio Management Paper Example

Primarily, portfolio management on Stock Trak application can be tactical or strategic depending on the inventor's assets allocation (Frankel, Laby, & Schwing, 2015, p. 18). Therefore, this paper underscores a critical reflection of investment strategies and portfolio management personal simulated asset allocation using Stock Trak.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

For my portfolio investment, I employed tactical asset allocation, which made my portfolio mix a bit more flexible and allowed continual risk management through portfolio rebalancing. For instance in cases when the asset valuation was high, I would place equity allocation lower than the normal and vice versa. For my portfolio management, I decided to go active by trying to meet investment objectives via asset allocation strategies within the short-term play period (one-week interval)

Moreover, I had also opted to diversify my portfolio that is to buy stock from across the different stock market sectors such as retailing, telecommunication, materials, and insurance. Consequently, I did the above purposefully to be able to spread risk and avoid risky fluctuation that may affect my returns in the play as changes occur in the market. Furthermore, I ensured equities securities by varying out trading among blue sticks stock who are clustered as risk-adverse and low volatility. With my tactical mode of allocation, I chose to buy stocks that would be resistant to pullback and had great value in the market.

Some of the top trades I made entailed buying stock from Samsung during a dip, meaning during the time of their earnings capturing bounce onwards and upwards as many investors came on board upon receiving the news of high sale volume of the Samsung smartphone. Due to the growth in the real estate in the US, I decided to buy a mortgage insurance company, MGIC, which traded at an average rate of 4-5% regardless of the S&P 500 dose. As a result, the placement allowed my stock to replicate a leveraged position in the game. Also, due to the drop in the OPEC oil prices, I decide to buy stocks from Mexican pesos bearing in mind the increase of import demand of the Mexico peso. Together with the successful trades above, I went for TVIX and Retails such as Amazon to hedge against volatility and fear in the market.

Nonetheless, I did relatively poor as some things did not work for me. I decided to buy and hold stock at their peak at the beginning of the semester and made plays that would play out in the long run, which depreciated and lost in a short amount of time respectively. My method of using TVIX to hedge the hedge against volatility was successful with the first few days but later together with poor performance in the telecommunication industry as they haemorrhage money.

Conclusion

In conclusion, investment strategies and portfolio management ensure proper planning objectives, diversification, relentless determination, and adequate management of risk for maximum returns, thus very central in the stock market.

Reference

Frankel, T., Laby, A. B., & Schwing, A. T. 2015. The regulation of money managers: mutual funds and advisers. New York: Wolters Kluwer.