Initial Investment

After reviewing and reconsidering my original plan for a physical project, I concluded that a lot of the work I would be doing was to be tedious and not really reflect my growth and acquired knowledge. Having discussed the course of my project with several trusted individuals, I decided that rather than creating portfolios for a number of fictional characters, it would be more beneficial to create my own hypothetical investment portfolio to learn the skills and know-how of individual investments.

To begin with, I will hypothetically inherit $10,000. Assuming I don't spend any of it, many young adults may  do otherwise, I will look for investment opportunities in a variety of domestic and international markets to hopefully turn this small fortune into accrued wealth. I will be using a guidance report given to me by my mentor the day of our first meeting in order to understand risk and the focus of my investment portfolio, which in this case is high risk with growth focus. This is determined by the amount of time I have for potential investment between today and late retirement years. It is known among investors that investing early leaves more room for risk as there will will be plenty of time to make up for losses before retirement becomes a factor.

It was made evident to me from various sources, such as econ. class, teachers, and online research that the best way to grow a portfolio is to spread the wealth across a wide spectrum of sectors such as energy, services, healthcare, etc. By making observations in trends, or rising/slumping performance in a given sector, it becomes a matter of timing and price to estimate the appropriate time to invest or sell. For example, if there are more burglaries in a certain given month than any other, I would look to purchase stock in security services while the price is low in the months leading up to that heightened average and hopefully, according to trends, more security will be purchased later on, increasing the value of my stock, now making it appropriate to sell. Of course, I would consult a financial adviser before making such decisions, so I hope to meet with my mentor in the coming weeks to seek direction for my portfolio, for which I will research at least an hour a day with trend tools as well as business, financial and everyday news sites.