You will submit a draft of the market environment and asset allocation sections of the final project . Assess how global forces may affect market performance (and wealth management strategies) in the coming year with respect to the primary markets you are considering. For example, are particular markets more promising than others? Are there any law change s on the horizon? Resource shortages? Political or economic changes? What implications do these have for the client's investment decisions? Next, you will present an asset allocation option for the client to consider for the upcoming year. In particular, address how the client might allocate investments among different securities - related products. Analyze how the tax consequences associated with various financial products in diverse global markets might affect the client's portfolio planning decisions. How does portfolio diversification affect risks and returns to the client?
Specifically , the following critical elements must be addressed:
I. Market Environment.
Use this section to assess how global forces may affect market performance (and wealth management strategies) in the coming year with respect to the primary markets you are considering. Support your response with relevant market research and analysis. For example, are particular markets more promising than others? Are there any law changes on the horizon? Resource shortages? Political or economic changes? What implications do these have for the client's investment decisions?
II. Asset Allocation.
In this section, you should present an asset allocation option, composed of diverse asset types, for the client to consider for the upcoming year. In particular, you should make suggestions with respect to the following :
a) How might the client allocate investments among different securities - related products? Use pie charts to show different allocation options and explain the risks and returns of the different investment products. (Note that your allocation options must include a variety of securities - related products in different markets.)
b) Analyze how the tax consequences associated with various financial products in diverse global markets might affect the client's portfolio planning decisions. Support your answer with relevant examples, research, and analysis. For example, how does taxation affect decisions on which securities or markets to invest in?
c) How does portfolio diversification affect risks and returns to the client? Your answer should be designed for eventual use with the client, using clear, non - technical language. In other words, explain to the client how investing in just one market or almost entirely in one type of instrument would affect risks and returns, compared to investing in diverse markets and products