Question

Demonstrate how would you associate investing in a single asset with an initial capital of

$1,000 with justifications taking into considerations major challenges and uncertainties in domestic and global market.

Answer 1

Answer-

The initial capital of $ 1000 can be judiciously invested in equities of Tehnology stocks and Pharmaceutical stocks both in domestic as well as the international markets.

The technology and pharmaceutical stocks are the least impacted by the pandemic COVID- 19 and are showing promising results in the near term as though these sectos are resilient and have shown good growth rates. Some of the stocks have shown exponential growth in short time period.

The pharmaceutical stocks across the countries have dramatically grown due to the shortage of medicines caaused due to initial disruption of COVID-19, however some of the stocks have raced to manufacure medication and vaccines for COVID-19. The tehnology stocks are also good bets given that they have shown resilience due to diversification in various sectors and implementation of Big data, Artificial intelligence by various companies due to disruption.

The other asssets have taken a beating due to COVID- 19 like bonds, metals and real esate. These assets have been adversely affected and are beaten down and remain uncertain ovder the peiod of time. The prices and demand of metals except gold have been rattled due lockdowns and disrution in business. The real estate business along with hospitality business has lost majorof business and seems uncertain in the near future.

Therefore it's prudent to invest in Technology and Pharmaceutical stocks in equity which are going to give good returns in the near future.