Investments

       At the beginning of class we were as most groups in this class were a little wary in purchasing stocks. While we knew the basics  of how the stock market work none of us had much experience in buying and selling stocks.  Not wanting to risk losing money for our teammates and also lose the game in the first we of we started by buying medium amounts of stocks that were perceived as safe stocks. Some Sticks that are perceived as safe by most people are for example, Apple, Pepsi, and Netflix. They are big well- established companies in the market and a  downfall or a sudden huge loss in price seemed unlikely.

        One scenario that ended up working out and had an unexpected high return was the Ryder Dow 2x strategy fund. Our logic was that the we thought mutual funds are deemed to a safe option. They offer a low risk-low return with the possibility of some return to be made. Ryder Dow 2x is a  mutual fund  that puts its money in Dow companies so if the Dow is going up it goes up, if the Dow goes down it goes down. There are two classes of this stock, A  which has a high risk and a C which is lower in risk. We  put our money in the less risky, less of a return class C stock. Fortunately for us the Dow was going up at the time. At first we bought a small amount  some 10,000 dollars saw the Dow and the fund were skyrocketing up then went all in and bought 225,000 dollars worth at 39 dollars a share this was our first substantial purchase of the game.  The other companies, Apple, Pepsi, and Netflix were  bought for a medium amount and produced exactly non  aggressive gains of  $4000 and $3000. Which is great for a week.  Those gains are a lot of money for most people during a 2 week span.

       The stock market at this point seemed to be producing great returns all across the board. The Dow was at a high point at  over 17,000.  It seemed likely that the Dow was going to go down eventually maybe not that day but with in the next couple weeks. Therefore, we sold the mutual fund for a extraordinarily high return of $11,000. (idk the percentage of  return we made on it) This was unexpected because we did not know that a mutual fund could provide such a high rate of return. When we did a closer examination of the fund it actually has produced a decent rate of return of 5% over the last decade and 13.5% over the last 3 years. It was great to learn that mutual funds which are supposedly one of safest things to invest in can yield high returns. Mutual funds can be more than something that you just put your money into and hope to gain a 2% return they can be very profitable.  I’m glad that we learned this as a group, with this knowledge maybe in the future one of us will invest in mutual funds.