Introduction
Dow Jones Industrial Average (DJIA) and the Standard and Poor’s 500 (S&P) indexes are different in various ways. The DJIA tracks the stock of 30 of the largest American market while the (S&P) 500 deals with about 500 large publicly traded securities (Alawneh, 2018). However, these exchange-traded funds are used by investors to determine general trends in the United States market. In terms of performance, S&P 500 is better than DJIA, I will invest in S&P because it has a significant number of stocks that enhance the aspect of diversification.
Discussion
Generally, in the stock market, investors relate a successful investment with the ability of the firm’s stock to beat the market average in the long term. In the case of Cushman and Wakefield PLC (CWK), the company’s shareholders have experienced a consistent decline in the share price over the past three years while the industry’s return is increasing. Having such poor performance, foreign investors are less likely to buy the corporation’s shares.
In the real estate industry, the foreign-based company imposing significant competition on CWK PLC is Colliers Internationals (CIGI). Based on the performance, the corporation is experiencing a significant increase in share prices making a large number of investors buy its stock. The contributing factor to the success of CIGI is its diversification of stock. Most investors prefer investing in CIGI following its wide stock range. The approach enables the financiers to choose the best service to perform effectively. In addition, the management of the business organization is dedicated to ensuring they generate optimal income from the debts thus enhancing performance.
Factors such as politics, technology, and the economy influence how business is done. If there is political tension, investors cannot invest because of the uncertainty of what will happen, they are afraid to lose money. Economic factors such as currency exchange determine the cost of your goods and services, the country’s currency depreciates investors withdraw their contributions.
Conclusion
When depreciation of currency occurs the country is unable to sustain itself because there is no value in their money, this makes the country vulnerable and the only option is to raise interest rates. Exchange rates are a crucial element when it comes to both investments and the development of a country.
Reference
Alawneh, A. (2018). Investigation of co-integration between Standard and Poor index and Dow Jones index in the New York Financial Market. International Journal of Economics and Finance, 10(5), 197-211. Web.