StockTrak Investment Strategy Essay Example | Topics and Well Written Essays - 500 words - 1

StockTrak Investment Strategy - Essay Example Corporate and Treasury bonds have been considered in the portfolio investment for diversification purpose of the investment risks. This helps the investor to spread the investment risk to avoid incurring heavy losses due to unforeseen market volatility in future (Fabozzi and Drake 68). The portfolio investment selected by the investor has the potential of allowing income generation and capital appreciation in future due to the characteristic of the various assets considered in the investment. One of the reasons that depicts that the investment portfolio is the pricing of the stocks selected (Reilly and Brown 33). The value prices of majority of the stocks selected in the portfolio investment are relatively undervalued. This is because the recent acquisitions and mergers by Google Corporation, Tesla Corporation, Trina Solar limited (TSL), AT&T Corporation, and Bank of America BAC depict that the profitability of the companies is likely to increase in future. Mergers and acquisition are essential for a company since it helps the company to expand its investment for high revenue generation in future. The companies will be able to generate more profit in future that is vital for dividend generation and stock demand in the stock market (Fabozzi and Drake 62). Thus, the current pricing of the various stocks considered in the portfolio investment are undervalued since they do not reflect the potential growth of the stocks. Consequently, the undervaluation of the stocks considered in the portfolio investment will ensure the capital investment of the investor appreciates in future. This is because the high demand of the stocks in future due to high profit generation will cause the price of the stocks to rise significantly. Accordingly, the value of the stock assets will increase significantly for the investor in future. Similarly, the high potential of the stocks growth due to profitability