Question

The upcoming US election has caused of lot of headlines, risks, uncertainty, and volatility, as we have discussed in class. If you were advising someone who had to invest his/her money in managed products before the US election, what would you advise them? What questions might you ask, what specific recommendations might you make? (Feel free to be creative and personalize your answer if you choose).

Answer 1

Answer : US election has caused risks, uncertainties and volatility which makes business environment more risky and dynamic. It means money should be invested in shares and stocks as these are investments with high risks.

First of all the person who want to invest money , will be asked that how much amount of money to be invested. and what type of Investment he / she want to do ?

More risk or less risk which will result in higher returns and less but secured returns respectively.

Then according to that secured Investments will be recommanded.

1) Saving accounts that offers high interest rates.

2) Certificate of deposits.

3) Saving bonds

4) Treasury bills

Above out of 4 combination or single Investment could be selected according to amount of funds and time of investment and by comparing rate of returns.

These mode of investment will be suggested because these are less influenced by elections. As these are influenced by policies framed by Fedral bank of country that is seperate from political system and have less effect of elections.

Hence concluded that in above way, as advisor , an individual will be suggested about investment to be done before elections.