how many of yall shorted the last week(s)

well the topic is in the title..

since ya'll want to work in the banking industry, i guess everybody or at least the majority invests in the markets or even doing some daily or weekly trading.

the last week was troublesome for the markets around the world.

any gained some good profits on the decrease of the markets?

personally.. i didnt invested because i had no money lol damned what a shame, if any1 would went short you could have earned a lot of money.

what you say, let me hear it

 
Best Response

Maybe you're thinking of traders or equity researchers rather than bankers? I've never done a bit of trading nor wanted to. Also, none of my fellow bankers traded (that I knew of). I'm sure we all had 401(k)s and such, but you're not exactly trading in those; you're buying mutual funds and separate account products for the long haul.

Why would being an investment banker necessarily mean you trade daily or weekly? First off, since you're on the wrong side of the wall there are tons of things that you wouldn't be allowed to trade since you're privy to inside information. Second, most bankers don't concern themselves too much with the markets. I think most people outside the industry would be surprised at how little the markets (except, of course, for fixed income) affect a banker's day-to-day business.

The feeling I got from my seniors when I was a banking analyst was that the markets were a minor, mostly irrelevant, and occasionally annoying side effect of our work. I can't imagine anyone in my former group being hot to trade stocks.

 

The analysts in my bank don't trade anything besides mutual funds. Personally, I periodically dropped most of my mutual funds in the last couple weeks. I probably got hit from 2 - 4% per fund overall, but overall I made a good 15+% gain over the past 12-15 months. I'll probably get back in for another year when things cool down.

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my intention wasn't to offend somebody. i know about the complaince guidelines in the industry but not every person in this forum is in the banking yet, lot of them are still at the university or school..

and i DONT assume that being in investment banking imply daytrading. i guess when you are a m&a specialist you dont have the time to do some for your own account (compliance etc).. i dont confuse it.

well, some of the the non-workers (still uni or school) may reply

lets hope

i had to made it clear at the beginning

 

Made a killing last week. Went long on some of the financial firms monday morning, sold most of the positions late tuesday (didn't sleep monday night) then started shorting thereafter.

Was it luck? Absolutely

The credit debacle is over exaggerated, trumped up in the media so certain people can gain amid the volatility. Traders are going to have to start earning their money now, though.

 

LEH and MS early on were my largest positions. Later I also went long with CS.

Just riding the tide, which is about as risky as it gets, but I'm not playing with too much money.

VERY curious to see whats going to happen on monday. Will be watching closely.

 

"hmm... Won't you need to know the markets if you are doing an IPO as an Investment Banker?"

What do you mean by "know"? Do you mean follow? When you do an IPO, you'll pay some attention to your comp set during the deal. You might also follow one particular industry segment with some interest during the months beforehand because it'll affect your offering price. But unless there are huge unusual systemic pressures like last week, you won't really care about the market at large. Nor will you be sitting at your desk charting and looking at Bollinger bands. You'll be digging through K's and press releases, using information from nine months ago or six months ago to value the deal, just like normal.

I have seen firsthand how bankers will waste hours looking for the cause of a weird valuation by scouring the financial statements. Say your associate is spending all night looking for weird variations in the accounting. You're exhausted and you finally figure it can't hurt to go to Yahoo Finance and pull up a quote (yes, at least at my bulge bracket bank, we had no better and more functional system for market data than good old Yahoo, because we didn't really need one). You say, "Oh, no wonder. The stock tanked last week. I wonder why." You go to Factiva and do a news run. You find a vaguely negative minor story last week that MIGHT have caused a small drop in stock price. You do a flyby on the website to make sure there were no big press releases and to eliminate the possibility of special dividends or shenanigans with share quantities. Then you attribute causality of the stock's nosedive to the minor news article in Factiva. You check with your associate, footnote it on the page, and go the fuck to sleep.

This probably illustrates the extent of the interest of an average investment banking analyst in the markets. An excellent trader, now, would probably KNOW the reason the stock tanked. Maybe it was a major employee stock options expiration date combined with the departure of a key person earmarked for the CFO role. Maybe a new whisper number came out. Maybe some huge trader is squeezing. They'll have an idea; they'll know at least something. As an investment banking analyst, you don't know and you don't really need to know. All you need to do is to footnote something and explain it to the boss so you don't look like an idiot, and you don't need market knowledge to do that.

 

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