Investment Strategy and Portfolio Management Essay - 2

Investment Strategy and Portfolio Management - Essay ExampleThe types of authorisement atomic number 18 real investment, fixed assets, or financial investments, basically agreement made on contracts such as securities, bonds among others. The purchase of financial investments leads to the purchase of real investments. Financial investments also give the buyer a solid ground into a look in real investments. Having a great financial investment requires the buyer and portfolio jitney to have great investment philosophies.An investment philosophy is thinking about how merchandises work, varieties that affect stocks in the market and the varieties of assumptions that investors do make. Investment strategies are basically designed to make use of this mistakes that are made by investors to make a take a crap out of them.There are several factors that affect the investments assumptions made by investors. They include Human behavioral traits, human beings do behave and coordinate diffe rent as nature has put it. But while this is so, most human beings have a t endingency to believe in majority or crowds being right especially on decisions. Thus for every momentum investor, who tends to invest in places where he sees crowds investing owing to the believe that they could be right in the terms of gain being brought about by the investment, there tends to be another person who doesnt believe in the same, contradictory. The contradict ends up investing in other securities rather than the common one. while this in the scam run tends to be a total failure for the contradict in the pine term the prices end to push and pull each other due to market factors and do variant in the long term bringing benefits to both.Markets efficiency is another factor to consider for a great investment policy. Markets are an organized system that collects buyers and sellers in one place for the exchange of goods and services. Securities are traded in various types of markets. approximate ly do have a physical location while others do