Economics Lecture Reflection
The lecture has supplemented our knowledge about the e-commerce, its impact and relation to the retail commerce and the peculiarities of the real estate markets. It should be stressed that the lecture actually supported the ideas that have been discussed in the readings. At the same time, I learned a lot about the various investment mechanisms as well as the alternative assets in the investment portfolios.
For example, the hedge funds are available for all whereas the private activities serve the private investors. The latter cannot leverage quickly from their investments. The legal construction involves the use of he private equity fund of funds or the venture capital trusts. On the other hand, hedge funds might retrieve profits quicker; moreover, they usually aggressively respond to the changes on the markets and the opportunities offered. The aim of the huge funds is to provide the highest returns possible as soon as possible. As to the securing of the investors’ interests it should be stressed that both ventures practice risk management. However, considering the short-term goals of the hedge funds, it should be stressed that they definitely accept the deals involving higher levels of risk. Apart from that, the Securities and Exchange Commission does not control hedge funds. At the same time, the investors of the hedge funds usually are not limited in time and can withdraw their profits relatively quickly. At the same time, private equities provide that the investor can retrieve profits after a specified time period. Regardless of that, it should be stressed that the operations of the hedge funds are completed under time limitations and significant pressures which might not always provide enough time for the consideration of all factors and risks. This the peculiarity of the hedge funds that have to quickly react o the changes in the market and environment and pass the relevant decisions. Therefore, in this case the level of the investor security is the lowest.
I have also learned that market average return rates refer to the medium that is found by the financial specialists who observe the fluctuations on the market and determine the average return that is provided to the investor after the certain period of time. The rate of the return might vary from month to month or day-to-day, therefore, this category is used to make the necessary projections and to create the investment portfolio for the clients. In the course of that, various indexes are employed including the Dow Jones Index, which provides an-easy-to-understand stock averages. The average market return for the S&P 500 is usually set at the point of 10%. Due to the overall financial crisis that has occurred in 2008 and the following recession the average market rate is nowadays 7% (Hamm, 2016).
The speaker also stressed on the outcomes of the online commerce. Since such online selling giants as Amazon.com are expected to destroy retail stores, the latest have to do something with this situation in …
