Assignment: Market View Paper- Wether be Fund Re-Balancing
Instructions: Write a 2-3 pageExecutive Summary-style reportthat gives your recommendation for a "tactical allocation" of the Wetherbe Fund. "Tactical" asset allocation refers to a shorter-term time period as opposed to "strategic" allocation based on long-term views of the financial markets. By short-term view, we mean a view for the remainder of the calendar year 2017.
To give you some perspective, Table 1 below shows size in terms of market capitalization in both dollars and as a percentage of the total for the major asset classes in which the Wetherbe Fund is invested. In your report, give your recommendations for these 5 asset classes so that the total allocation in the table sums to 100%. Include Table 1 in your report with your recommendations included.
In addition, you may include discussion of asset classes beyond these 5 classes if you desire. Support all of your analysis by reference to relevant economic data and current articles that you have found in your research. Good sources of information include Barron's, The Wall Street Journal, and CNBC's web site, among many others.
Structure and Formatting:
• Structure your report in proper format.
• Use 12-point,Times New Roman font.
• Single space the text. Double space between paragraphs and sections.
• Be organized. Use section headings and, when necessary, sub-headings.
• Use proper spelling and grammar.
• You may use bullet points for organization or emphasis.
• Provide at least 5 references organized in either APA or MLA format.
• Don't plagiarize. Use your own words. See the NMSU library's web site:
Table 1: Market Capitalization of Wetherbe Fund Asset Classes as of 2/15/2017
|
Asset Class
|
ETF
|
Market Capitalization ($ trillions)
|
Market Capitalization Weights (%)
|
Recommended Weights (%)
|
|
U.S. large cap equity
|
IWB
|
$24.45
|
28.26%
|
|
|
U.S. small cap equity
|
IWM
|
$2.30
|
2.66%
|
|
|
Foreign developed markets equity
|
EFA
|
$12.55
|
14.51%
|
|
|
Foreign emerging markets equity
|
EEM
|
$4.16
|
4.81%
|
|
|
Total for Equity Markets
|
|
$43.56
|
50.21%
|
|
|
U.S. investment grade fixed income
|
AGG
|
$43.06
|
49.77%
|
|
|
Total
|
|
$86.52
|
100.0%
|
100.00%
|