Fixed Interest Rate Analysis of USA, Canada and Japan
Added on 2019-11-25
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Running head: INVESTMENT MANAGEMENTGLOBAL FIXED INTEREST AND SHARE INVESTMENT OPPORTUNITIESName of student:Name of University:Author note:
1GLOBAL FIXED INTEREST AND SHARE INVESTMENT OPPORTUNITIESExecutive Summary This study aims to explore the market where Australian investors can conductinvestment. Study included OECD member countries, USA, Japan and Canada. Stock marketand fixed interest is considered in this study for getting idea about the performance of thesecountries. Later the performance of the countries is assessed by considering economic indicatorswhich includes growth rate, inflation, interest rate and exchange rate. Study shows that Australiashould invest in Japan and Canada as their performance is good. Also the recommendation ofthis study is , the Australian investors should use portfolio method before conducting theinvestment.
2GLOBAL FIXED INTEREST AND SHARE INVESTMENT OPPORTUNITIESTable of ContentsIntroduction......................................................................................................................................4Discussion........................................................................................................................................5Stock market performance of emerging market..........................................................................6Stock market performance of USA, Canada and Japan over the ten years (2007 to 2016).....6Fixed interest rate of USA, Canada and Japan..........................................................................10Fixed interest in USA............................................................................................................10Fixed interest in Canada........................................................................................................11Performance USA, Canada and Japan with respect to economic indicators.............................14GDP growth...........................................................................................................................14Inflation..................................................................................................................................15Interest rate............................................................................................................................16Exchange rate.........................................................................................................................17Conclusion.....................................................................................................................................17References......................................................................................................................................19
3GLOBAL FIXED INTEREST AND SHARE INVESTMENT OPPORTUNITIESIntroductionInvestment is considered as an asset that is often purchased with a view that it willgenerate wealth or will appreciate in the future with greater value. Economically, this concept ofinvestment if considered then it can be observed that investment involves the purchase ofproducts that are not kept for immediate consumption but kept aside that are used in the nearfuture to generate wealth. But from the finance pint of view, an investment is monetary assetsthat are purchased with a view that the asset will provide income in the future. Investment is alsorelated to economic growth because it encourages economic growth and this procedure takesplace with the utilization of sound investments at the business level. Now considering theconcept of investing it can be observed that it is an act of committing money or capital tobusiness, real estate and projects with the view to obtain profit.Before investing in oversea projects countries, home country mainly places a segment ofportfolios in foreign securities. This decision mainly involves analysis of various domains whichincludes stock market offerings, bond offerings, mutual funds and exchange traded funds. Thusbefore conducting the decision of investing in oversea projects, countries should determine theriskiness of the investment environments of the foreign country under consideration. Risks canbe generated from various aspects of the foreign country; these are economic risk, political riskand business risk.This study mainly involves the performance of three countries that are active members ofEconomic Co-operation and Development (OECD) that provide ground for investing and thisground is mainly provided to Australian investors. For assessing the performance of the countriesfixed interest and share markets over the last ten years (2007 to 2016) are considered.
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