Equity Analyst Project – Individual

loveliness Analyst Project Individual Scott Hatten MBA 737-F1WW (W13) Professor Lauren doubting Thomas March 2, 2013 This sensitives report will assess my index to maximize my personal return on enthronization with an allocation of $1,000,000. The general goal of this exercise is to pay seat the highest return realizable within the next 12 months. I am limited to the following asset housees for allocation of all investing fundss * U. S. Equities * U. S. Treasury Bonds * bills This paper will be my prospectus on the exculpation of the allocation and potential earnings in from each one class. U. S. Equities U. S. 30-Year Treasury Bonds Cash Proposed Allocation 70% 25% 5% $ Amount $700,000 $250,000 $50,000 Forecast +/- (12 Months) 13% 3. 0% 0% ROI $791,000 $257,500 $50,000 Estimated (ROI) for $1,000,000 as of December 31, 2013 = $1,098,500. 00 U. S. Equities As the fall in States economy prevents to grow in areas but contest in others, the decision to place the larges t allocation of funds into this category is made without hesitation. 013 is the 1st year aft(prenominal) a presidential election and the second verge for our current president. Typically in situations like this in that respect is less hype about a new leader in office and more show placed on making strategic decisions and outcomes. veritable(a) though were are currently looking at the possibility of thousands of government based worked to be subjected to needful pay reductions through a sequester plan, the get together States tune machines is moving at a warm pace.Since 2008 business and industry leaders have worked to get word the changing dynamics of both the US and globalistic economic challenges and have positioned their organizations to adapt more speedily to those conditions (Investors, 2013). As consumer spending and consumer confidence continue to increase, U. S. Equities should continue on steady growth plan which is indicated in the strong S&P Indices (curre ntly at 1518. 20), NASDAQ (currently at 3169. 74), and the DOW (currently at 14089. 66).These indicators provide direct indication that investor and business confidence levels are extremely high and gilt for positive returns. U. S. 30 Year Treasury Bonds Although this enthronement class can be considered the virtually worldly-minded of the three, the low yield of government bonds in the agone 10 years does not lend a comparative metric against many other enthronisation opportunities (Jacobs, 2012). The fixed rate of these instruments allows for a guaranteed return, but should solely be utilized at a stagecoach in an investing cycle when risk is higher(prenominal) than potential income growth.The 25% allocation that is invested in this class is positioned to provide a long term guaranteed investment, with the possible that these lower rates will not tramp significantly in the next few years. Cash The lowest of investment allocation classes is cash. The cost to afford any ins trument in this category is dearly-won and provides very little ROI. The funds kept in this allocation are specific for future investment opportunities where transition of funds from other classes could have a significant impact or cost to the overall 12 month plan (Mangla, 2012).Summary Looking back over the past ten years and most especially the past three years for investment returns and economic possibilities, there seems to be more growth in the past 24 months than what we have seen in over a decade. The rapidly changing international economic climate and the current government struggles with task based polices and the continued climbing US presentlyage will make 2103 a year where investors must(prenominal) maintain a long term center on while being selective in short term growth opportunities.References Jacobs, D. L. (2012). Are Bonds The Next Facebooknegatively Speaking?. Forbes. Com, 6. Investors job, D. (2013, February 19). U. S. asset demand picks up. Investors Busi ness Daily. p. A02. Mangla, I. (2012). Yes, You Can Dump Your Bank. Money, 27-28. Ross, S. , Westerfield, R. , Jaffe, J. , and Jordan, B. (2011-). Corporate finance load principles applications. (3rd ed. ).