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SECURITIES
VSVIX
FB
LMT
IWD
WCMIX
VMNFX
FULIX
American Express Var Cpn due 5-22-2018
ICF
Lockheed martin 3.10% due1-15-2023 callable
VZ
Bank of America 4.125% due 1-22-2024
Please provide a written description of each security on your “LIST” including if it is a stock, mutual fund, ETF, bond, etc. Tell me as many characteristics as you can with each security(large cap, small cap mid cap growth, value).Also, tell me how the investment is typically priced, the income generated from the security, the growth potential of the security and the overall risk of the instrument. Lastly, try your best to report the best economic circumstances under with this security will perform best. I realize some of these securities will be new for you, but try your best efforts and we will discuss this in class.
Folks, using your same list of securities, please assume an economic scenario of a boom with predicted GDP growth of 5% and an increased inflation rate of 4%. Under this scenario assume that growth stocks outperform value stocks; tech, industrials, and finance outperform telecom and utility names; non dividend paying stocks outperform dividend paying stocks; quality companies underperform non-quality companies; and finally interest rates increase with a 20 basis point increase in the short end and a 80 basis point increase in the long end. With this scenario, tell me which of your securities will do well and which will do poorly. Please input all your responses into blackboard.
Folks…continuing with our lists of investments, tell me how you think your securities will perform under the following scenario…”the CPI (consumer price index) has just dropped to .2% and the unemployment rate had risen to a 7-year high at 8.5%. Consequently the federal reserve has substantially eased monetary policy and lowered the fed funds rate to 1%.” You can see that I am asking you to determine how your securities will perform under various economic circumstances.
With regards to your list of individual securities, now assume that we experience a period of geopolitical crisis such as 9/11 , Brexit, Int. Bank fail ) with devaluations in currencies and fears of international governments failing. Under such a pessimistic scenario, report in how you think each of your securities will perform. Which one do better which one worse?
In Short,
tell me how each security is expected to perform in periods if 1) growth, 2) a recession and then 3) a global crisis.