Mr. A is in his mid-50 's and recently he was retrenched from his company. His commitments are to pay for his son 's university education and his wife is back to work as an accountant after many years. He is in his retirement stage in his life cycle. Mr. A has been investing for 10 years with Mr. David. Mr. David has gained Mr. A 's trust over the years and Mr. A is very much keen on investing again on Mr. David 's proposed investment plan. This shows that Mr. A is a risk-adverse investor as Mr. David 's proposal allows him to invest with a minimum of SGD 50 000 although he has sufficient savings of SGD 1.2 million. Mr. David 's proposal assures him of fixed returns every year and this is what Mr. A is looking for.
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A has made the decision in considering Mr. David 's investment proposal as his proposal assures fixed-income security of SGD 12 000 per year in his investment plan. However in the oil and gas industry there can be certain risk factors to take note of. The risks factors are political risks, geological risks, price risk, supply and demand risks and cost risks. (Andrew Betty. Investopedia LLC. (2015). 5 Biggest Risks Faced By Oil And Gas).
As Mr. A is considering investing in oil and gas companies in North American, there are economic factors that he needs to be cautious about. In the interview with John England, vice chairman and U.S. Oil & Gas leader for Deloitte LLP discusses North America 's energy renaissance. He elaborates on some of the favourable circumstances and disputes in the oil and gas industry. He mentions that the investors should look out ahead for the year and places where they can concentrate their investing their resources on. He mentions that the economy is very competitive and expenditures are high. See text-reference …show more content…
A to take Mr. Charlie’s investment plan. Mr. A would be expanding his diversification portfolio while investing in stocks, bonds and local and foreign currencies. Therefore, he will be expecting higher risk while maintaining stability or have higher returns from his investments depending on the economy cycle. As Mr. A is allowed to adjust the percentage weightings, I would recommend him to have higher percentage weightings on foreign currencies and stocks and lower percentage weightings in local stocks and bonds. This is due to the most liquid to illiquidity assets which can give Mr. A higher returns. At the end of 3 years, Mr. A will have enough returns to pay for his son’s university education. The risk factors for Mr. Charlie 's proposal are higher due to economic cycle and Mr. David 's proposal assures fixed return every quarter of the investment. If Mr. A is taking Mr. Charlie’s investment proposal, he would need to keep a close eye on the economic cycle as it goes through recovery, growth, and maturity and decline stages. Therefore, his returns may fluctuate
A has made the decision in considering Mr. David 's investment proposal as his proposal assures fixed-income security of SGD 12 000 per year in his investment plan. However in the oil and gas industry there can be certain risk factors to take note of. The risks factors are political risks, geological risks, price risk, supply and demand risks and cost risks. (Andrew Betty. Investopedia LLC. (2015). 5 Biggest Risks Faced By Oil And Gas).
As Mr. A is considering investing in oil and gas companies in North American, there are economic factors that he needs to be cautious about. In the interview with John England, vice chairman and U.S. Oil & Gas leader for Deloitte LLP discusses North America 's energy renaissance. He elaborates on some of the favourable circumstances and disputes in the oil and gas industry. He mentions that the investors should look out ahead for the year and places where they can concentrate their investing their resources on. He mentions that the economy is very competitive and expenditures are high. See text-reference …show more content…
A to take Mr. Charlie’s investment plan. Mr. A would be expanding his diversification portfolio while investing in stocks, bonds and local and foreign currencies. Therefore, he will be expecting higher risk while maintaining stability or have higher returns from his investments depending on the economy cycle. As Mr. A is allowed to adjust the percentage weightings, I would recommend him to have higher percentage weightings on foreign currencies and stocks and lower percentage weightings in local stocks and bonds. This is due to the most liquid to illiquidity assets which can give Mr. A higher returns. At the end of 3 years, Mr. A will have enough returns to pay for his son’s university education. The risk factors for Mr. Charlie 's proposal are higher due to economic cycle and Mr. David 's proposal assures fixed return every quarter of the investment. If Mr. A is taking Mr. Charlie’s investment proposal, he would need to keep a close eye on the economic cycle as it goes through recovery, growth, and maturity and decline stages. Therefore, his returns may fluctuate