Money market analysts analyze financial marketplace information, gather data on economic forecasts and trading volumes, and give advice on future investment opportunities. Market analysts delve into the world marketplace and predict which investments and securities look profitable. They search for new markets and products and try and figure out the direction of our money markets for the future. Analysts must be up-to-date with the latest financial and market trends and know a lot about current issues.
When thinking about what may appeal to clients in the long run, it is important to know all about what people want. Further, due to the shaky and rapidly changing nature of the market, market analysts do a great deal of speculating, which can sometimes be frustrating for the analyst. Since their primary goal is to find profitable investments that are user friendly, they must practice risk-management in order to maintain clients and earn money.
Money market analysts spend the majority of their time researching companies, industries and the marketplace. They extrapolate data from a variety of sources: newspapers, the Internet, financial journals and periodicals.
Since companies have become more concerned with maximizing their financial planning and investing in recent years, the result is the trend in hiring money market analysts to do this work specifically. They collect and analyze financial marketplace information such as economic forecasts, trading volumes, financial backgrounds of companies, historical performances and future trends of stocks, bonds and other investment instruments to provide financial and investment advice for their company or their company's clients. Money market analysts seek out possible risks and potential returns from investments, provide guidance and make recommendations on these findings.
Market analysts have to search high and low, monitoring national and international stock and bond markets and the economic conditions surrounding all other markets. They must also follow major American and international industries such as oil and gas, forestry, mining, banking and telecommunications, conducting detailed studies of different investment opportunities that a company may be interested in investing in. Money market analysts then prepare reports that recommend how the company should invest its money and whether they should buy or sell certain investments or securities. Another method of analysis is using statistical data to measure the different financial risks associated with a particular investment idea.
Usually market analysts conduct studies of an entire industry, assessing current market trends, products, and industry competition. They must keep up-to-date on new regulations or policies that may affect the industry, and very importantly, monitor the economy to determine its effect on potential earnings.
Money market analysts must possess the analytical skills required to conduct thorough, objective research and make recommendations for investment decisions. They have excellent communication skills because they write reports and sometimes publicly present their research and findings to management officials in companies. Analysts have high ethical standards and can keep information confidential because they are often dealing with millions of dollars in an organization.
Successful market analysts enjoy taking a methodical approach to collecting information, working with numbers, analyzing problems and finding innovative solutions. There is some risk involved in the work therefore they must be confident in their decision making skills and stock market knowledge.
Typical Tasks
Research global and national markets and seek out new investment ideas
Collect financial and investment information about companies, stocks, bonds and other investments using daily stock and bond reports, economic forecasts, trading volumes, financial periodicals, securities manuals, company financial statements and other financial reports and publications
Examine and analyze financial and investment information collected, including profiles of companies, stock and bond prices, yields and future trends and other investment information for use in making investment decisions
Provide investment advice and recommendations to senior company officials, pension fund managers, securities agents and associates
Prepare company, industry and economic outlooks, analytical reports, briefing notes and correspondence
Draw charts and graphs to illustrate reports, using the computer
Call brokers and purchase investments for a company, according to company policy
Money market analysts often work long and irregular office hours. Days are often filled with meetings and phone calls therefore in order to complete research, analysts may be required to stay late in order to finish their work. Further, some meetings may take place at night or on weekends. Money market analysts frequently travel to companies and conduct interviews with investors. They usually work on computers with specific company databases or financial software programs.
Workplaces, Employers and Industries
Money market analysts are generally employed in the head offices of securities firms, investment banking firms, governments, banks, trust companies, investment and underwriting firms, stock and mortgage brokerages, commodity exchanges and other companies and non-profit organizations.
Wealthy foundations, educational institutions and, sometimes corporations with substantial amounts of their own money to invest also employ market analysts. Otherwise, they may be self-employed and either own their own analyst firm or work as a freelancer.
Long Term Career Potential
Money market analysts usually come equipped with years of experience, often in other sectors of business. They are generally not young and fresh out of university as companies tend to entrust their money with older, more experienced investors. Also, it takes years to make a name for yourself in the industry and get contracted by companies to conduct financial analysis. Experienced market analysts may move into supervisory or senior management positions in larger companies or professional associations. More established money market analysts may write a financial column for a newspaper, or appear on television or radio shows to offer their financial suggestions.
Educational Paths
Money market analysts require an undergraduate degree in commerce, finance or economics. Preference is certainly given to applicants who have post graduate degrees such as a Master of Business Administration (MBA) or a combination of degrees in related fields. For example, a degree in forestry is an asset for financial analysts working in the forestry and logging industry. Most companies require prospective financial analysts to have several years of relevant training and work experience.
