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
Thanks for the insight, I appreciate the advice. Would you say there is any particular change you would make pre-MiFID vs post? Or do you expect the path to remain mostly the same as it is right now?
Coming out of undergrad, I had the option of ranking the teams I wanted to join. Pre-mifid, I would've based my choice on the industry I had the deepest interest in or a lax analyst that trains associates well. Post-mifid, I'd choose based on who was top 5 II rank because that's what'll matter.
Before I cared about Mifid II, I considered working at a smaller research shop and cover small cap stocks because they're more interesting and misvalued. Post-Mifid, I wouldn't touch them and just gun for banks that have to have a research platform to support their strength in markets businesses.
Damn. What I would give to be going into my spring quarter, senior year of high school right now.
Actually it really wasn't that great cus I was getting hammered with college rejection letters left and right but the succeeding four years were the goat.
ER will be fine. The lower tier ER are the ones who will get gutted. But they can always adapt by covering smaller cap names and provide differentiated research. Tldr: if you’re at the top 10 ER firms, you’ll be fine.
ER will be fine. The lower tier ER are the ones who will get gutted. But they can always adapt by covering smaller cap names and provide differentiated research. Tldr: if you’re at the top 10 ER firms, you’ll be fine.
Agree with ThatOtherGuy, ER is a great place to start, gives you a tonne of transferable skills, and offers great exit opportunities to companies or industries you cover, IR or buy side.
Included in the transferable skills is just the ability to write well, and in a logical order. So many corporate employees are just crap at this.
would only recommend if you're joining a top 5 II team... the rest are dead in the water
Where can I find out if the team or analyst is top 5 or in a ll team?
Sit eos voluptates hic voluptates facilis ut magni. Sequi officiis libero est.
Accusamus doloremque perferendis omnis quod et enim est. Numquam qui quis adipisci numquam qui. Aut veritatis a et modi.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...