Initial Investment Strategy

Group 49

We believe that interest rates will keep increasing in the coming months and will remain
at those levels for a while to control inflation. Our investment strategy is mainly focused towards
less risky assets such as ETFs, big established companies that have healthy financials and are
already generating profitable cash flows or after the pandemic show healthy signs of recovering.
These companies can also have market power and thus benefit from rising costs due to inflation
and reflect these costs to their customers. On the contrary, we see innovative growth-focused
companies as risky due to their profitability being further ahead in the future with more
uncertainty (more difficult to obtain loans, rising costs for their investments due to asymmetric
information), which when discounting the possible profits of such investment into present times
yielding lower returns due to high-interest rates.

Team 49
Ivaylo Iliev r0877406
Aourora Ines Ditova r0878862
Alika Gugnina r0870022
Kaan Danisman r0876901