Growing Rich - Arabictrader.com

KIRK KAZANJIAN
WALL STREET’S UNION CARD
Because of his many connections, Stovall is inundated with requests
from students to help them land jobs. Since Wall Street has been on
an unfettered boom since 1991, entry-level positions other than as
sales trainees are increasingly rare. That’s why he often suggests they
consider other fields, like industrial finance and communications,
which appear to offer more opportunities at this stage of the economic
cycle. “Right now, close to 40 percent of all MBAs want to work on
Wall Street, which is usually a leading indicator of a market top,”
Stovall says. “I start off every conversation by telling my job-seeking
students they are wise to keep their options open by looking at industries
that haven’t prospered as much in recent years and are poised
for a turnaround. I simply can’t lead people to openings in finance
as easily as I once could.”
Still, without an MBA or a strong background in electronic data
processing, Stovall claims it is virtually impossible to break into the
investment business, unless you get a formal introduction from a
connected insider. “An MBA has become sort of a union card,” he
says. “In the 1920s, all you needed was a high school diploma. That
made you special. Then, for my generation, it was an undergraduate
degree. A BA or BS was once stylish on Wall Street because you could
be a successful trader, broker, or banker by relying heavily on referrals.
Not anymore. It’s much more competitive now. These days you need
an MBA and strong computer skills.”
Furthermore, according to Stovall, an advanced degree gives you
the educational edge you need to be a successful practitioner. “You
must have a good understanding of futures, options, indexing, and
tax law, all of which are subjects they teach in graduate school,” he
insists. “It’s also important to be computer-literate. The requirements
for working in a trust company, bank, mutual fund, investment
banking firm, or just being a professional in general are much more
stringent now than when I got started.”
BULLISH ON THE FUTURE
Like the other experts I interviewed for this book, the longevity of
the 1990s bull market has taken Stovall by complete surprise. It’s
unlike anything he has ever seen in his 40-plus years in the business.
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