A Portfolio Selection using Safety First Model for US Blue Chip and Top 30 Companies under NYSE list during COVID-19

A stock is an investment wherein you purchase one of the company's stocks which by means is called a share. Most investors think that when they purchase a stock, it will go up the value. It will result also in to impact of an increase to the company's stocks as well. Because there are many stocks to check and invest in, the researcher chose the US stock market and considered in this study as a prime and one of the most powerful stock markets in the world. A so-called portfolio investment means a group of assets on which these are the chosen US companies. The goal of this study is to identify and look for a portfolio that outperforms benchmark markets (New York Stock Exchange, Dow Jones, and S&P 500) during the situation of pandemic Covid-19. The top 30 companies in the NYSE list are considered as the investment pool wherein some are tagged also as blue chips. From this, the researcher was able to develop and look for a portfolio that can outperform the markets during months between March to August 2020. Using the safety-first model to back-test, it was observed from the return statistics of the back-test period that a hopeful investor can outperform the benchmark markets during times of pandemic. Also, in these pandemic times, it is important for the investors to know the current situation and impact where their money is going and if it is advisable to invest. Also, it is obvious that when you are an investor, you should know when and where your money earned profit and have good investment options. It is important in this study to know what are the substantial risks during a pandemic and what could be the long-term strategy for your chosen stocks. For first time investors, this paper will help them assess their budget on stocks, where to invest their money, and the impact of a pandemic on their money.