Here's what happened in the stock/bond markets last week (6/3-6/7)

Stock Market Analysis

Conclusions: TGIF or it would have been an unpleasant week for stocks. As it was, the Dow moved ahead 0.88% while small cap stocks advanced 0.35%. Nevertheless, more stocks fell in price than rose, and for the first time in recent memory, more stocks hit new yearly lows than new highs. Could this be the proverbial correction we have been talking about over the last month?


$50,000 what business would you start?

Hi WSO,

I summon your collective minds to brainstorm on this idea!!

If you have $50,000 and you can start any business what business would you start and why?

-$500 monthly stipend for food/gas/cell phone
-couch is free (parents/gf/friends)

Present your business case and I will shower you with SB's like I shower supermodels with Cristal


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When an Investment Goes Awry, Politely Ignore?

Paulson and Co. made an interesting decision last week:

"At the request of clients and consultants, we will be reporting the
performance of our Gold Funds separately to investors in those funds and
interested parties
," Paulson wrote to clients. The firm's gold
investments "have received a disproportionate amount of attention over
recent months"—as gold prices plummeted—"and have detracted attention
from the performance and positive developments of our other funds."

They key instigation is that despite being only 2% of the firms assets, the Gold Fund's -47% performance (not a typo) is getting all the attention. This would make sense, except that most of his fund is gold-denominated (e.g. gold-share classes). 


WSO Conference 2013: Reason #18 To Join Us

There are 18 days remaining until the conference (June 29th) and each day we'll be listing off another reason for why you should join us at the conference.

Reason #18: Joshua Rosenbaum will be back again this year to speak at the conference. Joshua is a Managing Director at UBS and author of Investment Banking: Valuation, Leveraged Buyouts, and Mergers & Acquisitions)


Grab One of the Last Discounted Tickets Today (40% Off!)

See more reasons to join us inside the post...


How Much Would You Pay for More Time Off?

There is a new trend in human resources developing in corporate America. More and more companies are allowing employees to sell their unused vacation time, but some are even allowing employees to buy more vacation time - in some cases from the employees selling theirs.

This got me thinking: how much would you pay for more time off in banking? We all know the hours are brutal, and it would be great to get an extended break once in awhile that didn't require your hospitalization or the faked death of a relative. On one hand, it would be pretty easy to take your all-in comp and divide that by the number of days you worked in the previous year and set the rate that way. But it really comes down to the value you provide to your company, which is really much more subjective.

Let's say for the sake of simplicity that you worked 300 days last year and that your all-in comp was $120,000. Based on that, you made $400 a day. Would a day off be worth $800 to you? I'm making the assumption that the minimum you'd have to pay for a day off was $400 and that said day off would be unpaid leave, hence the $400 you wouldn't earn that day.


Discussing compensation as an intern

I just accepted a small time SA position at an IB boutique. Once I accepted, they sent me an offer letter stating compensation as $10/hr. I know in the past, they've hired interns for this exact same position doing the exact same thing paying $15/hr because I was referenced by a friend who has worked there before.


Finance is like Game of Thrones

Saw this today on quartz:

"Brian DeChesare, who founded the website Mergers & Inquisitions (which gives tips on how to break into investment banking) is also a fan. He said on the site that Game of Thrones is all about “political intrigue, fighting over petty issues and grudges, family feuds, betrayal, and backstabbing people in order to advance. In other words, exactly what you do in finance all day.”

Is this true? You always read about the "cut-throat" environment of Wall Street?

How much of this is hype? Or just aggressive trader mentality spread across the whole industry?


Con Men Hall of Fame: Barry Minkow – Part 1 of 2

As the CEO of a $300mm company by the age of 20 in the 1980s, he committed one of the most publicized fraud cases on Wall Street by the time he was 22, convicted of 57 counts of fraud and off to federal prison for 25 years. Since then, he’s been helping fraud agencies to crack cases. So, how did he do it?

Barry Minkow is the famous con man behind ZZZZ Best Carpet Cleaning, a business he founded at 16 years old. He eventually took it public and he himself was at a time worth approximately $100MM. So what happened? He simply leveraged banks, lied to investors, cooked his books, and leveraged his auditors against themselves by asking, “You don’t want to be the one to lose the ZZZZ Best account do you?” He fabricated some 20k+ documents to fool investors, auditors, banks, etc.


Best Places To Vacation in Caribbean?

I'm going to go to caribbean for a week and I need some recommendations on hotels and resorts that you guys have stayed at?

Ideally the place would be where you can chill on the beach one day but the next day go on a tourist trip/hiking trip to some rainforest area.

I'm thinking maybe Costa Rica, Puerto Rico, Jamaica, Caymans, or Barbados?

Any thoughts/input will be SB rewarded.

Thanks


Part I: So You Want To Be A Derivatives Trader?

Joris Luyendijk is an Anthropologist who runs The Guardian'sBanking Blog, a series of monologues where people in the financial sector anonymously talk about their working lives. This series is about a 20-something derivatives trader who worked in a small European country and is now a quant at a major London institution. I’ve formatted it into a Q&A interview with responses from his monologue, not mine. So if you're interested in what it's like to be a trader, especially overseas then read on...


Looking Through the PRISM

If you haven't heard some leaked NSA documents show that they have been getting direct access to large tech companies servers to gather data on their customers i.e. citizens of the united states and, well, everywhere for that matter. Here's one story for you.

On it's face i want to scream, shout and holler about how awful, illegal and invasive this could be. Then I realize this is the NSA we are dealing with here. They have the capacity to eavesdrop on conversations all over the world and literally pull a needle from a haystack on a second by second basis. You REALLY think that they give two wits about legality and court orders if they want something? I'm not saying I'm for or against large tech companies handing over data but if you think a simple no will even slow down the NSA you are dreaming.


Networking on the Golf Course?

Hello fellow mokeys,

Been pondering this one for the last while and haven't been able to draw the line for myself so would be grateful to hear some opinions. I'm fortunate enough to be a member at one of the nicer golf courses in my area. I have this afternoon off and went to look for a tee time and recognized many names from scouring the sites of local banks, firm etc. from all industries, from rank of associate all the way up to partner. My question: Is it bad practice too firstly book myself into an open spot in these tee times? and if not is their any opportunity to talk finance at all?