Global Industries Essay Example | Topics and Well Written Essays - 1000 words

orbiculate Industries - Essay ExampleAgain when the corporation opted to invest in the equities in 2007, this was the time when the current world(a) financial crisis was starting and they never recovered. Proper timing and a lack of diversity in enthronization may be attributed to the failure experienced by the corporation (Palacios & Musalem 2003). Given that the US economy may not improve much in the next three years, there is a need for orbicular Industries to consider investing in the developing economies, such has India and China. Other emerging markets in South the States such as Brazil, and also Africa, may be another option worth exploring.In the outgoing, aid fund managers take a leak been known to risk with the money of taxpayers in equity markets that be characterised by a high train of volatility. The operations of our tribute fund system has been such that the decision to take investing risks in the equity markets is very much arrived at by a few individuals at the management level but when we experience a market crash, the taxpayers work to bear this risk. Often times, allowance fund managers are quick to attribute the loss of taxpayers money on the world financial crisis and bad markets (Mangiero 2009). It is not often that premium fund managers shall be awake to the realisation that the fund may be governed by enthronement models that are quite faulty, coupled with crooked actuarial theories. According to a majority of the economists that specialises in the appraisal of funds, such plans may at best be viewed as risk time bomb that shall in the long-run result in losses. Inevitably, it is the taxpayer that shall be required to pay for such losses. For this campaign, one could argue that the reason why we have had such a horrible experience in our pension fund is because our pension plans and models are faulty, and we have never taken the initiative to revise them accordingly (Caulkin 2009). The practice by the pension fund in th e past years has been to heavily invest in equities. What appeared to have led the pension fund managers to such a decision was due to the assumption that the short-term meltdowns that they were experiencing would be offset by the ensuing financial gain in the long-term. Apparently, these fund managers seems not to have heeded the advice of financial economists, as regards the established model of investment markets that equities provide guaranteed returns over the long term (Pension pulse 2009). This is a goal that economists have proved to be quiet untenable. Clearly, no one anticipated a global financial crisis of the order that we are faced with, at the moment. It is imperative therefore that we do not repeat past mistakes. What this subject matter is that we should learn to diversity our investments, at least as a cushioning effect against losing all the taxpayers earnings.In high investments such as the stocks or the equity funds, perfect timing is very important. Apparently , Global Industries appears to have opted to make investments at a time when disaster was just about to strike. Another characteristic of the past investments since the early 1990s is that the corporations have failed to adequately diversity its investments. For example, at one time, the corporation was into