Financial Institutions and Instruments Essay Example | Topics and Well Written Essays - 3250 words

Financial Institutions and Instruments - Essay ExampleAn investiture funds strategy has more to do with responsibly, and often conservatively, managing an investment portfolio in order to maximize gains with a minimum of maintenance, a low recite of transactions (and their partner costs), and a minimum of risk.This paper will explore the investment strategy approach for the most part, whilst overly exploring some of the more simplified and well-tested technical strategies of the trading approach. A simplified investment strategy is the one most likely to be employed by an ordinary person with a modest portfolio, a minimum amount of time to devote to managing that portfolio, and limited ability, desire, and/or resources to devote to the use of sophisticated compendium tools. In other words, the kind of person who has a day job as opposed to world a fulltime day trader, and needs a strategy that includes a fair degree of automatic motion and pre-determined portfolio protection devices. Finding a consistent strategy that meets these requirements would be useful to a great number of people who are currently disadvantaged in the area of maximizing their investment gains by escape of financial resources, time, and expertise, whilst at the same time they may be very dependent on their investment action for their future financial security needs.Much work has been done in pursuit of a system that would consistently provide additional returns, with mixed results. The very existence of technical summary seems to contravene the Efficient Market Hypothesis. Some researchers have concluded that technical rules do not earn excess profits over a simple buy-and-hold strategy, (Beechey, Gruen, and Vickery, 2000). However, thither are aspects of market performance that are not completely explained by EMH, and the available evidence suggests that financial market returns are partly predictable, in ship canal that sometimes conflict with the Efficient Market Hypothesi s (Beechey, et al, 2000). Other discordant findings regarding the EMH versus actual stock performance include evidence that in the stock market, shares with high returns continue to produce high returns in the scant(p) run (momentum effects). In the long run, shares with low price-earnings ratios, high book-to-market-value ratios, and other measures of value outperform the market (value effects). Further, at times, asset prices appear to be significantly misaligned, for extended period, (Beechey, et al, 2000). Whenever inefficiencies such as misalignments or mispricings occur, an opportunity for excess returns likewise occurs - if someone with a technical analysis filter is watching for them and knows when and how to act on them.At surpass it would seem the EMH semi-strong or weak version best describes what is observed in the markets. Therefore it would seem that there may, after all, be something to be gained from at least a cursory investigation of the technical analysis tool s that are most readily available to the average investor, and that are easy to understand and use, and that is the criteria that was used when choosing technical analysis tools for inclusion in the investment strategy that will be outlined herein.St. Georges Bank has been traded on the Australian exchange since 1992, and is currently the fifth largest bank in Australia. It shares with the banking sector a 100%