PRINCIPAL OF FINANCIAL MARKETS
The objective of this assignment is to assess the investment conditions in the Australian economy form Top Down Fundamental Analysis.
Students should proceed to the Reserve Bank Website:
https://www.rba.gov.au/chart-pack/
From here you can down load graphs of key economic indicators. Then using these graphs analyse the recent history of the Australian stock market and form a prediction as to the investment conditions in the current
Australian stock market.
The indicators must include the following:
- World Economy
- GDP Growth World
- Australian GDP Growth and Inflation
- Australian GDP Growth
- Consumer Price Inflation
- Interest Rates
- Australian Bond Yields
- Exchange Rates, Australian Dollar vs.:
- US Dollar, Euro and Yen
You should be looking at these indicators and comparing them to what happened to the stock market shortly after. In your analysis include a definition and/or background information on each indicator that you are analyzing. At the end of your report state your conclusion as to whether or not your analysis shows that current investment conditions in the Australian stock market are favorable.
Report Required:
Prepare a report of no more than 10 pages outlining the above analysis and the selection of the resulting portfolio. Marks will be given for content not for length. Anything over 10 pages will not be marked.