Assignment for Course: | Finance 215 – Financial Management | Submitted to: | | Submitted by: | | | |
Date of Submission: 08/01/2013
Title of Assignment: Stock Market Project part 3
Instructions: See the Discussion board for instructions for the three parts of the stock market project.
CERTIFICATION OF AUTHORSHIP: I certify that the individual named above completed the assignment that is attached. Any assistance received in its preparation is fully acknowledged and disclosed in the paper. Any sources from which the individual used data, ideas or words, either quoted directly or paraphrased is also disclosed.
It has been an interesting journey with the stock market these last couple months. This is my first experience ever in contact with stock market and of course studying and understanding it. Honestly, I still feel like an “idiot” in that market but “less idiot” than before. When I picked the stocks to study I tried to pick firms I knew tech, or contractors without even doing a study on them. I had no idea that Apple was going down since September 2012 (well it’s starting to rise again). I didn’t pay attention that my portfolio was heavy on tech companies and I head no clue that it might be smart to invest even in “bad” companies. Well, I didn’t learn something and here are some of my findings.
It is kind of tricky to think if it’s a good time for short or long - term investments.
The current reality in today’s market is that stocks will undergo multiple price change. Even stocks that lose money if held for a year or longer may be very profitable at several times during the year. The future is the only thing that matters. There is no way to know in advance how long a given stock should be held. Over the short term, the behavior of the market is based on enthusiasm, fear, rumors and news. Over the long term, though, it is mainly company earnings that determine whether a stock's price will go