global economic environment
Individually evaluate the current global economic environment, domestic macroeconomic environment, and stage of the business cycle to determine the three best industry or sector groups to invest in at this time.
Discuss and explain the relevant factors you have considered in your selection of these three industry or sector groups and the rationales of your consideration.
Prepare
Make sure you categorize your discussions and explanations of the relevant factors and the rationales in the top-down sequence of the global economic environment, domestic macroeconomic environment, and stage of the business cycle.
PART 2
individually, apply the sector rotation analysis, the beta rotation analysis, the “growth” analysis (such as P/E ratio, sales/revenue growth rate, earnings growth rate), the “value” analysis (such as dividend yield, PEG ratio, price-to-book ratio) and the financial ratio analysis (such as liquidity ratios, profitability ratios, leverage ratios, efficiency ratios, and market price ratios) to determine 5 to 7 financial ratios and/or data that you would like to apply in selecting stocks from each of the three industry and sector groups you came up with in Discussion 4.1 Part I discussion. Explain and discuss the rationales of why you prefer these financial ratios and/or data. For each financial ratio and/or data you have selected, determine the optimal value or a range of values you would like to use and enter into the Finviz Screener (https://finviz.com/screener.ashx) to select 7 to 10 public companies from each industry/sector. Discuss and explain why you set up that specific value or range of values for each financial ratio or data in the process of screening for and picking up stocks to invest in each of the three industry or sector groups.
Prepare
Make sure your discussion and arguments develop on evidence from the assigned readings.
Integrate material from previous classes and readings or other courses.
Your arguments distinguish between different kinds of information – fact, opinion, theory.
