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The Dow Jones Industrial Average has fallen by over 5,500 points since its all-time high just three months ago. The Fed Chair, Mr. Jerome Powell,
The Dow Jones Industrial Average has fallen by over 5,500 points since its all-time high just three months ago. The Fed Chair, Mr. Jerome Powell, has warned that unemployment in the US could go as high as 25%. Price of oil (West Texas Intermediate or WTI) in the US turned negative for the first time in history. The IMF has declared that the global economy has entered recession, the likes of which we haven't seen since the Great Depression. The President of the United States has called for negative interest rates. The coronavirus pandemic is wreaking havoc in financial markets and economies around the world. You are a fund manager entrusted with USD 10 million in funds to be managed for a high net worth individual, who has given you a time horizon of ten years (up to 2030). This individual is a 40-year old female executive, whose risk appetite is average to above-average, and who wants you to invest these funds in USA. How would you invest these funds? Please provide a detailed break-down of your investments. Provide justification for why you chose each of those investments. Use the considerable academic and real-world knowledge that you have gained in this course for your answer. Your answer should be between 500 - 1,000 words
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