The second Homework announcement

Dear Professor,

1, This is my portfolio investment plan:

a. Saving account: 10%

b. Education: 20%

c. Health: 20%

d. Real estate: 30%

e. Gold, Currencies : 20%.

2, The explanations to the above mentioned things.

We can see that at the same time, the market does not behave the same way for different objects. These terms might be offset by other terms and vice versa. 

a. First of all, I want to invest in “Saving account” because it might help me any time. If I meet problems in my life, I always have a provision  when trouble comes, do not need to borrow money as I can withdraw anytime and still resolved everything. 

b. The second term is “Education Investment”, Anyone who want to improve their skills, their knowledge, to become more intelligent, they have to learn or study. In the context in many places around the world that is in need of learning environment of international standards, business education bring potentially big profits for investors and me.  Foreign investors have introduced education and training model new style with modern technology applications, attracted special attention from the public. A modern educational environment will stimulate the research and learning, it also creates great human resource for the country in the future. 

c. Besides, creating your own best educational foundation, the creation of the service excellent health care is essential most. The new health threat is increasing so hospitals around the world need to invest in health care equipment, land, ... to expand and upgrade the hospital, while investment in new of medical research. No one in the world is the exception of illness including people rich or poor. When they meet diseases or illnesses, they will spend money to spend on various services. So the issue of health spending is necessary. With them, investing money for themselves is to develop and achieve success in the future.

d. Real estate investment as mentioned with 30%, I think that is reasonable because world population growing, the housing problem is needed to be discussed. the sale and rental of apartments takes place every day. Low-income people would tend to hire small apartment with cheap, high-income people they prefer to live more comfortably. so they choose the luxury apartment rental with favorable conditions. Where strong economic development, people to settle down and earn a living. so the real estate in the rapidly growing market makes its price is rising every day. this leads to profit from real estate investment stable routine.

e. Why I do not choose the stocks that which has been replaced by Currencies and Gold. In fact, whatever is the same because they are often unstable and fluctuates constantly. When the price of gold increases that reflect the context of the global economy is facing the risk of instability and it also threatens the stability and integrity of the paper money system. Hence, whatever the value of currencies may be rised or reduced. This investment may unchanged or if positive, it will be profitable and if not good, suffer from loss is no significant.

 

Thank for your great suggestion, I would seperate them to two items. firstly, I want to choose 5% for Gold and 15% for Curencies. If the former increase, the latter may be decrease. With Gold, when  it has an upward trend, it will rise significantly and vice versa. 

And with Curencies 15%, they have a small fluctuation. So it is safer. 

Sincerely,

Mint