OIG 4.11
Thank you all for coming. Today’s meeting will be the last time we review our portfolio and make sure that the portfolio will be in good shape before summer kicks off.
Alisha brought several market updates. The Federal Reserve upgraded its view of the economy. It is anticipated that the Federal Reserve would walk ways form the stimulus policies. Interest rate is still low and will be staying low for a couple of years. Market confidence for European rises. Fed Reserve’s stimulus plans will expire in June. However, there are still uncertainties about the market. Another important market update is about China’s changing attitude towards America. China used to desire to imitate the American capitalism system. However, due to the long-term financial crisis, Chinese government slowed down in purchasing American Treasury Bonds. On Wall Street, the stock market ended its five-day skid and started to recover.
Linyi then gave several suggestions for the portfolio. She suggested that we pay close attention to stocks which have great potentials to grow. Also, she suggested that OIG pay more attention to more stable stocks such as Citi, JP Morgan, Bank of American and Wells Fargo. All these banks have diversified categories of investment. Another important thing to do with our portfolio is to identify stocks that are not doing so well and minimize the loss we might have, such as AT&T and Vodafone(VOD). Some fields that Lingyi suggested we look at to invest in include energy utility companies and real estate. Energy utility companies always carry goof dividends, which will help cushion some of our losses. There are clear signs of recovery in the real estate market. Prices for apartment and real estate commercial lending are picking up.
Wanda did a presentation for “Word of The Week”. Alpha is a measure of performance on a risk-adjusted basis. Alpha takes the volatility of a mutual fund and compares its risk-adjusted performance to a benchmark index. High level of alpha will result in great profit when marketing is doing well and greater losses when market starts to decline.
Next week, we will have our ‘Senior Job Panel’.