My internship provided me with a crash course on how the market operates. I worked as a credit analyst in our leveraged finance office. My supervisor encouraged me to watch a weekly telecast online called Commodities Countdown on Stocksharts.com. This is where my interest in commodities and the risk associated with them began. I watched how certain positions traded throughout the summer, but I mainly focused in on Gold and Silver. At the start of the game the first few stocks I invested in were mostly involving gold or silver ETFs. I first few purchases included positions in two large cap companies Wells Fargo and Yahoo. I also invested into Fitbit which is a small cap company. Also, I invested into two ETF’s Direxion Daily Gold Miners Index
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The situation that caused Wells Fargo to underperform was the ghost account scandal that the company is still dealing with. I invested because I believed I could buy the stock while it was experiencing a price drop due to the news and then the stock would increase once the new CEO began operations. This wasn’t the case and the stock didn’t make the significant jump after all. Yahoo was one company I knew would invest in at the start of the game because I was holding it in my personal portfolio. With Verizon buying Yahoo out for $4.8B, I assumed the stock price would jump after the sale went final. Similar to that of how LinkedIn’s stock price jumped when Microsoft acquired the company. My assumption was wrong and the stock price didn’t increase after the sale. The next positon that underperformed was First Majestic Silver. When I first started trading with my actual stock portfolio AG was one of the first stocks I purchased this past April. I saw the price climb from $8.22 to $18.42. With that I decided to invest into the company. I didn’t expect that the price actually peaked then significantly fell, AG is now currently $9.83 a …show more content…
Being able to invest with $1,000,000 allowed me to see how each investment impacted my portfolio, something that my personal portfolio can’t do on the same scale. I learned that you need to be constantly aware of what is happening across all industries, as well as how some world events can play a major factor in the stock price as well. I learned that in order to be successful you have to pay close attention to the markets and the moment you don’t watch the market it will eat you alive. I also learned that making assumptions on certain positions wasn’t the right reasoning to invest into certain stocks. Overall, I enjoyed participating in the game throughout the semester, but wish I could have remained as the one of the top two investors in this game for a longer period of
The situation that caused Wells Fargo to underperform was the ghost account scandal that the company is still dealing with. I invested because I believed I could buy the stock while it was experiencing a price drop due to the news and then the stock would increase once the new CEO began operations. This wasn’t the case and the stock didn’t make the significant jump after all. Yahoo was one company I knew would invest in at the start of the game because I was holding it in my personal portfolio. With Verizon buying Yahoo out for $4.8B, I assumed the stock price would jump after the sale went final. Similar to that of how LinkedIn’s stock price jumped when Microsoft acquired the company. My assumption was wrong and the stock price didn’t increase after the sale. The next positon that underperformed was First Majestic Silver. When I first started trading with my actual stock portfolio AG was one of the first stocks I purchased this past April. I saw the price climb from $8.22 to $18.42. With that I decided to invest into the company. I didn’t expect that the price actually peaked then significantly fell, AG is now currently $9.83 a …show more content…
Being able to invest with $1,000,000 allowed me to see how each investment impacted my portfolio, something that my personal portfolio can’t do on the same scale. I learned that you need to be constantly aware of what is happening across all industries, as well as how some world events can play a major factor in the stock price as well. I learned that in order to be successful you have to pay close attention to the markets and the moment you don’t watch the market it will eat you alive. I also learned that making assumptions on certain positions wasn’t the right reasoning to invest into certain stocks. Overall, I enjoyed participating in the game throughout the semester, but wish I could have remained as the one of the top two investors in this game for a longer period of