Sunday, August 20, 2006

Babies and the analyst job market

So, the gahmen says we'd better make more babies or we'll have to import more foreign talent... Makes me think of the current job situation in my industry. FYI, the job market for equities analysts is hot, hot, hot. This is quite a new phenomenon, taking root really only in the last year or so. Before that the market had been pretty weak following the bear markets of 1998, 2001 and 2003.

I was speaking recently to a senior regional analyst from a top international brokerage. They are looking to fill an analyst position in Singapore and have been looking for months without success. And they can pay MEGA bucks. Another big-name house lost an analyst some weeks ago, and did not even bother looking locally. They brought in someone from their Australia team instead, which I thought was great solution, rather than competing for whatever talent was available in Singapore. At our shop, half the analyst positions have turned over within a year.

I've never seen such a job market before, not even in the go-go mid-90's. Now we have hedge funds and property funds taking analysts from long-only houses, long-only shops ramping up analyst teams, and all three poaching from the sell-side. Meanwhile, sell-side brokers are replenishing numbers and top-tier names are poaching from second-tier houses. On top of that, the traditional breeding ground for new analysts - local brokerages, have all but disappeared. The upshot being, analysts with two to three years' experience are filling jobs specified for five-year-olds, and getting paid that way.

I'm gonna teach my kids to pick stocks, man. A is for "Assets", B is for "Book value"...


PC said...

hmm.. got lobang for me to return to the analyst world? reckon i got some of them "stockpicking dust" left over in me... *grin*

wang man said...

it's madness ... I also getting plenty plenty phonecalls from recruiters ... hope this lasts!