An ethical dilemma arises when the portfolio fails or incurs losses, and the manager is left to make critical decisions about the portfolio. Some money managers can be tempted to remain silent or lie about a specific portfolio's performance in fear of losing or lacking payment. Money managers must be transparent and adhere to their set goals and targets to ensure that they succeed. The manager should have the companies best interest at heart and should not misuse their roles for selfish gain. They should avoid financial complexities, which are pretexts for unfair practices. A money manager should take full responsibility for their success and failures. They should not make the company or clients suffer at their expense.
One of the investment analysis tools is technical analysis. This analysis tool evaluates stock price patterns and parameters using calculated computer charts and graphs. Technical analysis focuses on price movement patterns, trade signals, and other chart analytical tools to analyze security weaknesses and strengths. Contrarian investment fundamental belief is that the perfect time to sell or buy a stock is when most investors are bullish or bearish ( Reilly, & Brown, 2011) . As such, a contrarian investor sells the stock when it is at its highest or near peak price and buys it when it is at the lowest price. An assumption that current price trends will continue can be used to form an active portfolio basis. Therefore, the price momentum strategy indicates that cold or low selling stocks will remain so while hot stocks will always be hot ( Reilly, & Brown, 2011) . Investors using this strategy underreact to new information arrival. The price momentum strategy only aims at past prices when making the sale or purchase decisions.
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When making investment decisions, it is essential to use all the analysis tools to minimize failure and increase the chances of making successful decisions.
References
Reilly, F. K., & Brown, K. C. (2011). Investment analysis and portfolio management . Cengage Learning.
