ADVISING INVESTOR CASE Group 1 Kushal Shrestha - 21524 Sailesh Dahal - 21506 Sangita Giri -21509 Suprim Shrestha - 21527 CLIENT Bob Miller Mary Swanson John and Kelly Klein Herb and Back Nichols Bob Miller Profile Profession Investment Horizon Investment Allocation Loss Reaction Nature : 42 years old teacher : 23 years : $50000 : 70% equity,High exposure inCan Oil & gas sector : Huge Loss : Stick to Long term, No short term obligation : Swing Emotion Recommendation Convenience on his decision for long term and not change strategy as said in questionnaire - Diversify the high exposure of oil and gas sector which was also warned before due to great cyclical volatility. - Counselling him for not swinging his emotion cause he is suffering from illusion of control - Equity Return in long run will be benefited in history so it will be best achieve in his long term goals - Mary Swanson Profile Profession Investment Horizon Investment Allocation Loss Reaction : Retired Professor : 30 years : $1M : 60% equity, 40% bond (5% Gold & 5% Real Estate for beating inflation) : N/A : Long term, fear made to convert in cash Recommendation Support on her non emotional decision for long term - Small strategic adjustment in allocation for growth - Shift government bonds to corporate bonds to provide higher return with risk adjusted. - Slightly bigger position in gold - Jack and Kelly Klein Profile Profession Investment Horizon Investment Allocation Loss Reaction : Regular Small Investor : 30 years : N/A : 85% equity,15% Bond : 50% Portfolio : N/A Recommendation Donʼt be bias in trend , trend can be changed anytime, falling trend could be buying opportunity. - Show the history price action after crisis and market fall - Show the long term return history- 10 year average return - Herb and Barb Nichols Profile Profession Investment Horizon Investment Allocation Loss Reaction : 50 year old,Married : 10 years : $100000 : 75% equity,25% Bond : N/A : High Risk Tolerance, Solid Income for short term Recommendation - Maintain current account mix, buying opportunity at low so its better to invest more in equity to average down cost price
