Portfolio Management
Will be writing about the Macro-economic condition of Qatar, and analyze the suitability of the general environment for investments, and in particular on stock investments. In order to do so, you can use economic reports and indicators available.
Economic reports and indicators are those regularly-series of statistics put out by deferent parties such as government agencies, non-profit organizations and in some cases private companies. They provide measurements for evaluating the performance of our economy, the historical and forecasted business cycles and how this will affect the market participants behavior. Economic indicators are released in different frequency: daily, weekly, monthly and/or quarterly.
Usually investors should keep good track and records of the most important indicators to be able to take appropriate investment decisions and to decide if overall conditions are good for the stock market. Of course since our investment decisions are based on expectations, then you are expected to look at the current state of the economy and try to make your own expectations about the effect of these conditions on the stock market performance.
Based on the above, you are required to analyze the following issue:
-Which economic indicators, in your opinion, are worth looking at? Select at least three indicators.
– Analyze your selected vital economic indicators and write a report about the economic condition in Qatar, remember that data can change rapidly, and that broad trends are not judged by one isolated economic data point.
Below are indicators to be used:
- inflation
- Interest rates.
- consumers spending
- Future potential of country resources and growth.
Important notes
This is an assignment that has no right or wrong answer and it only assess your ability to analyze the Macor situation which will have an effect on your chosen portfolio. It is more important to clearly show your opinion about the selected indicator and analyze it for the case of Qatar rather than the general illustration of the indicator itself.
You can use figures and graphs to bring good analysis.
Use the sample below:
- Introduction (Importance of Economics in investments and portfolio management)
- Examples of available economic indicators.
- Most appropriate Economic Indicators (Inflation, Interest rates, Consumer spending and Future potential of country resources and growth)
- Analysis of these indicators for the Qatar Economy, use tables and graphs.
- Recommendations for investors and portfolio managers regarding the economic conditions in Qatar and how this will influence the stock market investments in different sectors.
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