Management of Optimal European Portfolio after the crisis. Investigation of European Capital Markets

      Аннотация: As a result of market turbulence, a large number of investors have been looking for safe haven investments. The Optimal European Portfolio aims to be adapted to new market conditions and requirements. Europe is selected as an area for investment given its sound economic potential. The advantages of the region are considered to be the innovative products, a dynamic corporate sector and high-quality exports. The dominant share of the financial instruments in the portfolio is selected from six countries with the highest political and economic stability, benefiting from best ratings. The two countries with the best economic performance in Europe are chosen so as to achieve optimal portfolio performance. The Optimal European Portfolio is a combination of investments, each having desirable individual risk - return characteristics but all fitting together based on their correlation so as to achieve return - risk balance. The main objective of the portfolio is to achieve an optimal balance between stability and performance. After growth and favourable economic conditions have been restored, it is expected that companies in the investment countries will grow fast and outperform benchmarks and markets overall. The bond element of the portfolio ensures protection. It is expected that optimal annual returns will be achieved in 3 to 5 years.

Ключевые слова: risk, Crisis, Equity, Portfolio Management, Optimal European Portfolio, Bonds