Is ER a bad goal in college with MiFID II coming?
So I'll start this off by saying I don't really know what I'm talking about. I am a senior in high school who is going to college soon (semi-target).
From what I have read, Equity Research seems rather appealing to me, and it would probably be what I network for and hope to do after college. I enjoy research and analysis, and the lifestyle seems more attractive than IB. Now I have seen some of the doom and gloom regarding MiFID II and the threat it poses to the industry. I understand it probably won't destroy it entirely, but I'm curious what people's thoughts are on ER in the mid-term future. Do you all think that it will be much more challenging for a recent grad to get these jobs, or is that unlikely to change? And at the same time, does the prestige of a university become more relevant and make the jobs more competitive? I ask because, while I haven't decided on a college yet, it is unlikely to be a target school, and I don't know if that would disqualify me.
I understand that this information doesn't really exist yet and that I'm unlikely to get a solid opinion, but I just want to know if it is wise to position myself this early on for a job like that, or if I should stay a little more broad for the time being and play it safe in the case ER is out of my reach (at least straight out of undergrad). My only worry is that not starting with networking and planning for the career I want early enough could limit my options if I don't have strong OCR or a strong alumni network to work off of at the university I end up at.
Thanks for any advice.
I think you're in a good spot. Since you're a senior, you have 4 years before having to actually decide if ER is what you want to do out of college, and you can have the privilege of observing how Mifid II unfolds while safely in school.
IMO, the next 2 years will be challenging for ER as the reality of Mifid and the fee compression in active management set in simultaneously. After that, who knows. Either way I think you're well positioned because...
2.From my experience, the focus on target schools has been de-emphasized in ER. I'm seeing more efforts in digital recruiting which puts semis and non targets on a more even playing field. Still, networking is KEY because spots in general are hard to come by
My one tip on networking is: get to know the ER recruiters at each firm you want to be in so you can have an ear to the ground as to what's going on. As Mifid II unfolds, so will the recruiting tactics of these firms so it'll help to have someone in the know updating you on any changes