Talking Tuesdays with Fancy Quant

Hiring for any job is extremely challenging. Getting hired as an employee is also extremely challenging. Today I cover the biggest issue on why firms can't find the right candidates as well as why individuals who are fully qualified can't find good jobs.

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The whole third season of the podcast has been about working at a startup. I have seen the highs and I have seen the lows over an eight year period with sideline views for a few years after. In this episode I share four pieces of advice I wish I would have known before or during my time with this startup.
If you enjoyed this episode check out the other episodes where I discuss dealing with failure, the joys of a startup, as well as many of my experiences in manufacturing.
Video Version:
https://youtu.be/KxzJuARx3Zg

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The year 2020 has been crazy all on its own without talking about the economy or financial markets. There have been a lot of warning signs above and beyond the common sense. What's common sense about an economic crisis coming? Well think about the definition of GDP...which is Gross Domestic Production. That's the amount of output from people work. If a larger portion of society is unemployed due to Covid then GDP will naturally fall. One of the issues is that data including GDP takes time to be reported. There is also the domino effect where a small group of people are unemployed which leads to less consumption which leads to more people being laid off to less consumption and the cycle continues until we can some how stabilize the process. Sometime jobs come back from a potential solution to Covid or at least a way to slow it down like wearing masks. Either way we'll see a drop in GRP which also effects other economic factors like unemployment, the stock market, and interest rates.
Now banks are issuing extensions to customers who can't make their mortgage, credit card, or auto payment which is a really nice thing to do. However the issue is the banks need to get paid to remain stable themselves. They can float the debt over short term shocks however from the length of time that Covid has hit the world this looks like it will have long-term effects. Banks need to be tightening credit which means making less loans to risky people.
A few market indicators are that used car values are increasing as less people are buying new cars and are instead buying a cheaper version (used) and gold and silver prices have jumped a lot. I'm not a big fan of following the crowd however Ray Dalio and Warren Buffet have also been making moves to hedge for a market crisis such as selling bank stocks and buying precious metal (gold and silver stocks).
It's a good idea for people to increase their savings as a way to prepare for bad times.
WARNING:
I am not a financial advisor and nothing in this podcast should be taken as financial advise. This is simply a discussion of what is going on from my perspective, meaning these are my opinions!
Video Version:
https://www.youtube.com/c/DimitriBianco
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What does a corporate financial analyst do? I asked myself this question as I was going to school for my BBA in Finance however I never found an honest response. I thought it would be a boring job as many people seemed to be talking all about investment banking or IB as they liked to call it. I decided in undergrad that I would try and work on the trading side or the investment banking side as it required more driven people.
To my surprise I was actually doing corporate finance and I didn't really realize it. I had been working at a start-up manufacturing company for a few years and I slowly transitioned into helping with the finances and accounting as well as many other jobs. The job was so busy all the time I just viewed myself as someone doing business. Looking back on the experience, one of my main jobs was to do corporate finance. I was involved on gathering data, analyzing the data, and making presentations about the results. This in a nutshell is what corporate financial analysts do. They provide a financial perspective to the business problems.
Many of the skills needed to be a financial analyst were taught in my finance undergrad. Discounted cash flow models (DCF), debt pricing (bonds), and ROI were common tasks. Some of my projects including financial reporting, profitability of custom projects, developing pricing models, reviewing supply and demand of markets, creating and presenting PowerPoint presentations to investors and customers, conducting cash flow analysis, and providing information on decision making for manufacturing costs including raw materials and labor.
The career is slower than other areas of finance however the job is much more stable. The environment is fairly cyclical with reporting while allowing some creativity in ad hoc projects. People are usually friendly and you get the opportunity to work with a variety of departments as finance effects every part of a business. Many of these jobs have a relaxed dress code or casual Fridays. You might work a 50-60 hour week when deadlines arise however most of the time you will work around 40 hours and be able to have a life outside of work.
CFI Financial Analyst Skills:
https://corporatefinanceinstitute.com/resources/careers/jobs/what-does-a-financial-analyst-do-day-in-the-life/
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I quit (resigned) my job for a variety of reasons with one being an ultimatum to comply and leave. After leaving, the stress went away and I could see more clearly the rate race I was struck in beforehand. As I read articles online about the great resignation months before it seemed like people were quitting for more money and nicer teams. There was a casual sprinkling of different benefits like working from home. The real answer to this is that employees want more flexibility! Working from home has been great for many people. If you have kids you also understand the stress of trying to work and watching kids but as the country opens back up, working from home with kids at school or with a sitter seems much more practical. I can multi-task when times are slow and work more hours when times are busy. I can save hours of commuting by just signing up and jumping right into my work. Not to mention if you work in a big city, you can avoid the stressful driving with so many crazy people.
With so many people resigning, companies are also competing much harder for talent. Many of them are offering working from home, flexible hours, and better team culture. Those that are resigning need a break from the nose to the grind mentality and many are finding better opportunities with companies who care.
Pew Research:
https://www.pewresearch.org/fact-tank/2022/03/09/majority-of-workers-who-quit-a-job-in-2021-cite-low-pay-no-opportunities-for-advancement-feeling-disrespected/
Harvard Business Review:
https://hbr.org/2021/09/who-is-driving-the-great-resignation

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