INVESTMENT RESEARCH AND ANALYSIS
Though not too common in this region where you see the research analysts on TV, talking about market movements and recommending stocks or bonds to buy or sell. Research or investment analysts are more than talking heads; they stake their reputation on ideas that “stand the test of the market.” Being a research analyst can be a high pressure job spent poring over large amounts of financial information from various sources, analyzing potential investment returns and risks, and forming recommendations to investment decision makers. Analysts examine both the micro and the macro, looking at what individual companies are doing, at the performance of the industry, at how outside events are affecting the industry, and at the historical and global context in order to explain events.
They also try to give at least an indication of what is likely to happen next, as well as identify trends and explore their implications. The resulting analysis and must be presented in a comprehensible narrative to clients. Buy-side analysts typically work for asset management firms, while sell-side analysts work for securities brokers. Analysts may specialize in certain sectors (for example, banking, oil and gas), countries, or markets. Among a research analyst’s rewards are the intellectual satisfactions of being recognized as an expert in your field and, of course, being proven right by the market. The job opportunities may depend on areas of specialization that are in demand and requires strong quantitative, analytical, and communication skills are essential.
- Published in INVESTMENT RESEARCH AND ANALYSIS