Making a Market in Peyton Manning

The sports gambling world is remarkably similar to Wall Street market making, and is therefore normally a pretty boring affair. A sports line is set according to the balance between buyers and sellers. Set the line on the favorite too high, and money floods in on the underdog, and vice versa.

So I was pretty shocked to see the opening line on next week's Denver vs. Jacksonville game, like many in the sports betting world. It's no secret that Peyton Manning is on a hot streak and is breaking records left and right, but here's one even he has to be surprised at: the Broncos are favored by 28 points over the Jaguars, making it the largest spread on an NFL game in Vegas history.

Let me put that in perspective for those of you who don't bet. The Jacksonville Jaguars are winning by 28 points before the coin toss. Before a single play is called, before Manning even takes the field, the Jags are up by 4 touchdowns.

Market Commentary by: James Investment Research, Inc.

Stock Market Analysis

Conclusions: The government shutdown in Washington was not nearly as disastrous for the stock market as much of the financial markets predicted. For the week large stocks like those of the S&P 500 were flat. Small stocks such as the Russell 2000 even advanced 0.4%.

For those who look at history rather analysts' modeling this is not really a surprise. During the last shutdown in 1995 and 1996 the stock market actually advanced 5%.

Why the difference between reality and expectations? Much of this is due to analysts forgetting that high levels of fear usually generate opportunities. Such was the case in the Fall of 2012. Worries over the fiscal impasse (taxes and spending) brought about higher fear levels and the start of a surprising rally.

The WSO Advantage

Every step of your career we have you covered. Our products & services are listed below:

Financial Modeling Training

Templates, M&A, LBO, Valuation, + more. Learn More.

Interview Prep Guides

50,000+ copies sold...for good reason. Learn More.

Resume Help from Actual Professionals

Polish Your CV to Land More Interviews. Learn More.

Find Your Perfect Mentor

Realistic Mock Interviews. Learn More.

Video Library: 100+ Hours

Industry Insight & Specific Guidance. Learn More.

Research 1,000s of Firms Free

Interviews, Compensation + more. Learn More.

WSO Job Board

Exclusive $100k+ Positions. Learn More.

Happy Hours & Free Webinars

Don't Miss Out! WSO in Your City. Learn More.

Fighter pilot to finance

Hi guys, I'm new here with some questions...

I'm currently living a dream I had as a kid of flying jets in the military, but I've always wanted to work in finance as well. I told myself that if I loved doing this enough that I'd keep doing it, but for various reasons (none related to subpar performance), I'm going to be done after my initial commitment (5 years from now).

Thanks to graduating at the height of Iraq/Afghanistan, I was lucky to get to where I am considering I had a 2.5 GPA in Aeronautical Science. I'm working on a second undergrad degree in math through the University of Illinois distance learning, and will be able to finish it by the time I am free from my military contract.

What ponds are you fishing in?

"There are riches in niches."

What's your specialty, do you have one?  I've started to come to the conclusion that people who are successful find a niche and exploit it.  No one has made a name for themselves as a generalist, "Oh talk to Bob, he knows a little about a lot.."  

There is a common American (is this universal? I don't know) expression that asks "would you rather be a big fish in a small pond, or a small fish in a big pond."  The implication is if you find a small pond it could be rather easy to become an expert, rather than trying to be the biggest fish in a very big pond.
Niches fascinate me, most investors would agree that almost all successful businesses have a niche that they actively exploit.  Some companies grow to the point where they have economies of scale either in their branding or in their network where a niche is no longer needed.  Wal-Mart doesn't need a niche, they have the scale to crush any local competitor.  But a local grocery story that wants to compete with Wal-Mart needs to differentiate themselves.  A local store might play up their local-ness, or carry high end organic brands, or offer superior customer support, or even locate themselves in a better location.  But they have to do something different, if they advertise that they will beat any of Wal-Mart's prices they won't last much longer than their Grand Opening.

6 Reasons to Hire Athletes

Mod note: Yes someone just posted about this yesterday but I have a feeling you'll like this version a lot better

Why are athletes given so much deference during the recruiting process? I've seen this question several times during my time here at WSO. It's a fair question, as a former athlete, I can certainly attest that some of the dumbest people I've met have been athletes. So, why do they command such a preference during recruiting? David Williams, from Forbes, has written a piece about why he fills his corporate roster with athletes exclusively. Although, it should be noted, he doesn't necessarily mean former college/professional athletes.

At our company, we work to fill our roster with "athletes." I don't mean this necessarily in the physical sense, although it turns out that quite a few of our members are literal athletes - we have a national-class triathlete, I have a personal interest in competitive and recreational bodybuilding, and there are multiple marathoners, bikers, soccer, and basketball players, CrossFit enthusiasts, etc. on staff. We also have a companywide interest in health and fitness, which we call "Fishbowl FIT." But when I advise people to seek and hire athletes, what I am really referring to is the athlete traits (akin to leadership traits) that make any individual an exceptional hire.

So, what are these traits?

5% Hit to GDP If Debt Ceiling Violated: Goldman

As you've no doubt heard by now, this little goverment shutdown we're in the middle of is small potatoes compared to the impending debt ceiling debacle. The projected date we "run out of money" is October 17, so ten days from today. If the US were to miss an interest payment as a result of the debt ceiling not being raised, it could result in a 5% drop in GDP according to Goldman Sachs.

"If the debt limit is not raised before the Treasury depletes its cash balance, it could force the Treasury to rapidly eliminate the budget deficit to stay under the debt ceiling," wrote Phillips and Dawsey in a note distributed to clients on Saturday night. "We estimate that the fiscal pullback would amount to as much as 4.2% of GDP (annualized). The effect on quarterly growth rates (rather than levels) could be even greater. If this were allowed to occur, it could lead to a rapid downturn in economic activity if not reversed very quickly."

In other words: GAME OVER. The forced reduction in spending would send the global economy into a tailspin. Even just a couple days of the debacle (for example, if they didn't raise the ceiling until the 19th) could cost months worth of growth in the US, an almost certain and substantial ratings downgrade, and fiscal chaos worldwide. Mass hysteria, dogs and cats sleeping get the picture.

Financial & Valuation Modeling for the Oilfield Services Industry

Attended by investment banking, private equity, corporate finance professionals, MBA students, and those in career transitions, Wall Street Prep's popular Boot Camps bridge the gap between academics and the real world, to equip professionals and students with practical financial skills they need on the job.

Oilfield Services (OFS) Modeling Boot Camp Agenda
Day 1 OFS Industry Overview OFS Financial Statement Modeling in Excel
Day 2 OFS Valuation (DCF, Comps) Introduction to Private Company M&A in OFS Industry

October 10, 2013 - 8:00am to October 11, 2013 - 5:00pm
Event type: 
Other Meetup

What constitutes success?

After a fierce debate with a few friends I decided to put the topic that we were debating on here to get the opinions of those whom are active here, mostly individuals whom are very successful professionally and/or academically.

Here's A Quick Intro Into Different Types of Duration

Yes, I know all fixed-income and typical investors understand what duration is and its importance. However this article is for the people who are just learning about finance and are hungry to see what is out there, I'm here to help and offer my understanding on the topic as I continue my journey in learning the art of finance.

Duration is both very important, and is very damn interesting. There are many types of duration and it can explain unique characteristics about a bond.


Hey guys,

I have offers at GS in a CRG/HC-type group, Lazard, and Evercore.

The thing I don't really like about GS was there is a big IPO/debt issuance component to the work that I don't think I would enjoy. Plus, GS doesn't really comp very well (tho I've heard Lazard is comparable pay...could anyone confirm?) I summered at a JPM/MS and really didn't like parts of the job that I think will carry over to GS. At the same time, it's GS and I've heard that CRG/HC/NR groups are chill and place up there with FIG and TMT.

HBS & Hedge Fund Experience

Is it true that HBS looks down upon hedge fund experience prior to applying? They may think leadership and management ability not honed/required, not contributing to society...

WallStreet Prep Master Financial Modeling