Business Cycles

1. Currently, the value of Chevron stock is $86.30. The amount of shares that I have invested in Chevron has increased by .08% to produce a profit thus far of $82.

2. I actually did pretty well working through this exercise with only choosing two incorrect paths. This exercise distinctly demonstrates how numbers are not the leading factor that the fluctuation the prices of stocks. It becomes very apparent by the end of this module that stock enthusiasts should always look to the future. As I maneuvered through each “Transphase” I had to take into account all events and circumstances prior to choosing a path. Even though the numbers presented may have looked alluring and enticing, it also became dependent on the economic events occurring within U.S. and the world whether to invest or to bank; amassing all the information presented and deciding upon a path. Without current events it would become a best guess scenario. The occurrences of the market and world events considerably weighed a factor in whether stocks prices will rise or fall.

The overall objective to investing in stocks is to maximize wealth. Because of this drive there are an array of factors influencing the price of stock; GDP, exchange rates, interest rates, inflation, unemployment, war, environmental devastation and so on. (Ahmed, 2010) In my opinion there are so many different factors that persuade stock prices that the precise number is unknown. Taking this into account, if the majority of the surrounding information advocates a bright future, investors will begin to feel spirited and the bidding up of stock price begins; a rise in stock prices will be seen. In the same manner, if the greater part of the news is sepulchral then investors will become discouraged and quickly begin selling stock and a decline in stock prices will be seen. (Fedorov, 2011)

3. Chevron’s stock, in my opinion, will continue to produce a profit over the next remaining years. There is no doubt that...