Archive for the ‘Finance’ Category

Young MoneyIn recent years, the financial industry has undergone a transformation. Changes, such as tighter regulations, have resulted in smaller financial payouts for young financiers, but many of the most talented and ambitious students continue to be drawn to careers in finance. In Young Money, Kevin Roose seeks to understand what attracts people to Wall Street, which people find the most success, and what the future of Wall Street holds in light of these changes. To achieve this, Roose shadowed eight college graduates as they embarked on careers as analysts at some of Wall Street’s top firms. He documented their journeys as they faced challenges, doubts, and questions about the value, morality, and fit of their work to their strengths. Ultimately, Roose discovered what it takes to succeed on Wall Street and the sacrifices that must be made to gain the long-term power and prestige that these types of firms offer.

Each year, Wall Street firms attract many of the most talented graduates from top-tier universities. While some individuals succeed and pursue long-term careers on Wall Street, many choose other paths for the following reasons:

  • The workload is too burdensome. Many analysts complain of spending too much time in the office. First-year analysts are typically required to work long nights and weekends, often totaling more than 100 hours each week.
  • The workload is too challenging. Some underperforming analysts are not asked to return to their programs for a second or third year because they make too many mistakes or fail to meet expectations.
  • The managers may make the workplace miserable. Many of the managers referenced in Young Money were demanding, volatile, and demeaning. Their tempers caused many of the analysts to dislike their work environments, and in some cases, adopt negative personalities of their own.
  • The work does not align with some analysts’ skill sets. Many college graduates set aside their ambitions for the promise of high salaries and the opportunity to put prestigious institutions on their résumés. They often do this without understanding or possessing the skills that are required to succeed as an analyst in these roles.
  • Other ventures seem more exciting and fulfilling. Many technology companies and startups attempt to woo first-year analysts away from Wall Street with the promise of more excitement and autonomy and a better work-life balance.

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116502594Investing in the stock market has always been risky. Even the most conservative of investors have had their shares of ups and downs. In Wall Street’s Just Not That Into You, Roger C. Davis shares a less traditional way of investing in the stock market, one in which current market trends are given a more important role in deciding where to invest. This tactical investment strategy reduces losses that many of the long-term-hold strategists accept as a normal part of the market.

Stock market investing can seem like a nauseating roller coaster ride at times. While the ups and downs of the market are inevitable, the losses seen by most long-term-hold investors can be minimized when they take a more tactical approach. The basics of this tactical investment approach include:

  • Analysis of current market conditions. There are trends in the marketplace that can be observed and recorded and that can expose critical information. Investing alongside these trends rather than against is crucial.
  • Availability of favorable investment opportunities. The traditional rules of investing, where older people nearing retirement must stay away from riskier stocks and younger people must stay away from safer stocks, are no longer valid. What makes an investment favorable is much more complex than that the investor’s age.
  • Risk management. While no one can predict the future, certain indicators have historically preceded significant tops for both individual stocks and the market in general. Understanding these indicators goes a long way in reducing risk.

To learn more, please visit http://www.bizsum.com

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