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gmatjeet
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My attempt at essay:
ESSAY QUESTION:
The following appeared in a strategy memorandum of an investment company:
"Over the past several years, investment in precious metals, such as gold and silver, has proven to be one of the most profitable investment strategies for our firm. Over the next decade, the demand for these metals is expected to be strong, largely driven by the economic growth of large emerging markets--China, India, and Russia. Thus, our investors are best served by increasing their exposure to precious metals to take advantage of this unique profit-making opportunity."
Discuss how well reasoned you find this argument. Point out flaws in the argument's logic and analyze the argument's underlying assumptions. In addition, evaluate how supporting evidence is used and what evidence might counter the argument's conclusion. You may also discuss what additional evidence could be used to strengthen the argument or what changes would make the argument more logically sound.
YOUR RESPONSE:
The argument that the investors should invest more in precious metals is quite well reasoned and flawless with mention of multiple evidences.
First, the argument provides the evidence of profitability in the precious metals investment by mentioning the experience over the last years. This proves the fact that the firm has experience in dealing with such investments and has earned profit for itself as well as its investors.
Secondly, the argument bases the proposal on economic growth of emerging markets. All the economists across the world agree that the growth of emerging markets is an ongoing economic success story which is continuing and is slated to continue for decades to come. It is a historically proven fact that whenever any market grows, the demand and in turn price grows for valuable items. With gold,silver being one of such items, it can easily be assumed that the demand and price for these will continue to grow.
Thirdly, the argument clearly invites the investors to increase their exposure and does not recommend to completely expose their investments in this strategy. This allows the investors to assess their plans and choose a proper level of exposure. A more detailed statement about % exposure would have actually made the reader feel that the firm is sure about the strategy but if such a statement would have been made, it would have lead experienced investors to assume that the firm does not want to evaluate the investors plan before the actual investment.Certainly more muscle could have been added to the argument, if certain proposed investment figures and expected returns are stated.
In my final analysis, i can easily conclude that the evidences provided in this argument are quite convincing and persuasive. Further there are no such assumptions made which if proven to be incorrect will weaken the overall argument.
ESSAY QUESTION:
The following appeared in a strategy memorandum of an investment company:
"Over the past several years, investment in precious metals, such as gold and silver, has proven to be one of the most profitable investment strategies for our firm. Over the next decade, the demand for these metals is expected to be strong, largely driven by the economic growth of large emerging markets--China, India, and Russia. Thus, our investors are best served by increasing their exposure to precious metals to take advantage of this unique profit-making opportunity."
Discuss how well reasoned you find this argument. Point out flaws in the argument's logic and analyze the argument's underlying assumptions. In addition, evaluate how supporting evidence is used and what evidence might counter the argument's conclusion. You may also discuss what additional evidence could be used to strengthen the argument or what changes would make the argument more logically sound.
YOUR RESPONSE:
The argument that the investors should invest more in precious metals is quite well reasoned and flawless with mention of multiple evidences.
First, the argument provides the evidence of profitability in the precious metals investment by mentioning the experience over the last years. This proves the fact that the firm has experience in dealing with such investments and has earned profit for itself as well as its investors.
Secondly, the argument bases the proposal on economic growth of emerging markets. All the economists across the world agree that the growth of emerging markets is an ongoing economic success story which is continuing and is slated to continue for decades to come. It is a historically proven fact that whenever any market grows, the demand and in turn price grows for valuable items. With gold,silver being one of such items, it can easily be assumed that the demand and price for these will continue to grow.
Thirdly, the argument clearly invites the investors to increase their exposure and does not recommend to completely expose their investments in this strategy. This allows the investors to assess their plans and choose a proper level of exposure. A more detailed statement about % exposure would have actually made the reader feel that the firm is sure about the strategy but if such a statement would have been made, it would have lead experienced investors to assume that the firm does not want to evaluate the investors plan before the actual investment.Certainly more muscle could have been added to the argument, if certain proposed investment figures and expected returns are stated.
In my final analysis, i can easily conclude that the evidences provided in this argument are quite convincing and persuasive. Further there are no such assumptions made which if proven to be incorrect will weaken the overall argument.
