Abstract
Our investment strategy in Japan: We are in charge of a Japanese branch of a foreign investment bank. We need to make an investment strategy for a 100 million US dollars in total. The investment term is 1 year for 50 million dollar and 10 years for the remaining 50 million dollars. Our goal is to gain higher yields for both 1 year and 10 year instruments. Consequently, as an introduction, we will first state the main differences between both short term and long term investment strategies, so as to decide in what kind of securities, and sectors to invest, depending on the investment length. Introduction: Actually, short-term investments are by definition designed to be made only for a little while, and hopefully show a significant yield. Short term investments can consist of stocks, bonds, etc. a company has bought and will sell shortly. On the contrary, long term investments are investments a company intends to hold for more than one year. They can consist of stocks and bonds of other companies, real estate, and cash that has been set aside for a specific purpose or project. Long term Investments also consist of the stock in a company's affiliates and subsidiaries. Long-term investments are designed to last for years, showing a slow but steady increase so that there is a significant yield at the end of the term. The investments made under long term investments may never be sold.
