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Financial Analysts Forecast The Future

Individuals and businesses depend on financial analysts for guidance on investment decisions. These specially trained professionals evaluate financial data and study economic trends to assist clients in creating their investment portfolios. A financial analyst should have a head for numbers and a strong knowledge of accounting and economics. The work involves evaluating fiscal data to predict market conditions and investment performance. By analyzing stocks, bonds, equities, and other types of investments, analysts can perform cost-benefit analyses and economic forecasts that help individuals and companies make strategic decisions about their finances. The work involves proficiency with spreadsheets, relational databases, and statistical and graphics packages. Analysts who work with corporate clients typically develop detailed presentations and recommendations for senior managers. They also may verify corporate documents to determine compliance with government regulations. Analysts are typically skilled in financial modeling, data analysis, marketing, decision-making, math, and strategic thinking. They also need excellent attention to detail because a single mistake could cost their clients a significant amount of money. Financial analysts are in demand because business decisions require their expertise. They can evaluate where a company’s money comes from and forecast its economic future, allowing them to help managers make investment decisions that should generate the greatest return. In addition, since the economy is still recovering, financial analysts can also contribute to stimulating business growth. Students enrolled in a masters in business analytics or masters in data analytics program can gain practical knowledge that can be used immediately in their workplace.

Roles Of Financial Analysts

Helping their clients’ investment portfolios to thrive is probably the most important aspect of a financial analyst’s job. To do that, they take on a variety of responsibilities, which may include:

  • Tracking macro- and micro-economic trends
  • Reading publications to research the current economic climate
  • Meeting with clients to discuss investment strategies
  • Determining a company’s value by examining its financial statements
  • Creating buy-side or sell-side recommendations
  • Facilitating trades to generate revenue
  • Maintaining databases of financial records

In addition to the technical skills needed for the job, communication also plays an important role because financial analysts must be able to explain ideas to clients and answer their questions. “I could have done the most brilliant analysis out there, but it would be for naught if I couldn’t communicate my thoughts in a manner that fit the portfolio manager’s style,” says Manisha Thakor, founder and CEO of MoneyZen Wealth Management. “Your ability to speak with management teams, frontline employees, and product-end users is every bit as important as crunching numbers in Excel.”

What To Expect

Working as a financial analyst can be a high-stress job and typically involves longer hours than usual. About one-third of financial analysts work more than 40 hours a week, according to the U.S. Bureau of Labor Statistics (BLS). In addition, they tend to spend a lot of time on the phone talking to experts, prospective trading partners, and other analysts. Financial analysts also travel frequently to meet with clients. Some may need additional professional qualifications, such as becoming registered with the Financial Industry Regulatory Authority to work in securities, or earning the Chartered Financial Analyst credential, which is the most recognized and respected investment management designation in the world.

Career Outlook

The median annual salary for financial analysts is nearly $82,000, according to the BLS Occupational Outlook Handbook. Employment in the field is expected to grow 12 percent by 2024, which is faster than average. The BLS estimates that more than 32,000 financial analyst jobs should become available over the next decade. Financial analysts may work for hedge funds, mutual funds, banks, securities firms, insurance companies, or nonprofit organizations. Most financial analysts work for employers that handle securities, commodity contracts, and other financial investments and related activities, according to a 2014 study by the BLS. Other types of employment include management of companies and enterprises; credit intermediation and related activities; professional, scientific, and technical services; and work for insurance carriers and related activities. Some financial analysts, like fund managers, may work on commission and earn a portion of a fund’s returns. Financial analysts tend to work in large metropolitan areas that have greater concentrations of financial institutions and job opportunities. Analysts in an office are typically colleagues who answer to a portfolio manager or other senior manager. Junior analysts may work their way up to senior analyst level in three to five years. Senior analysts may aspire to become portfolio managers or partners or senior managers at banks. Some analysts opt to become financial consultants or investment advisers. Other titles for financial analysts could include portfolio managers, fund managers, ratings analysts, risk analysts, investment analysts, or securities analysts.

Maryville University’s Master Degree In Business Data Analytics

A changing economy may be signaling a growing need for financial analysts. The online Master of Science in Business Data Analytics (MSBDA) program at Maryville University can prepare students for careers as analysts or related positions in the field of financial services.

 

Sources:
What financial analysts do

  • https://www.bls.gov/ooh/business-and-financial/financial-analysts.htm#tab-2 http://www.careerbuilder.com/advice/so-you-want-to-become-a-financial-analyst
  • https://www.mynextmove.org/profile/summary/13-2051.00

Skills and education

  • http://www.careerbuilder.com/advice/so-you-want-to-become-a-financial-analyst
  • http://study.com/articles/Financial_Analyst_Educational_Requirements_for_Financial_Analysts.html

In demand

  • https://www.roberthalf.com/finance/job-seekers/career-advice/5-reasons-financial-analyst-jobs-are-in-demand

Roles

  • http://www.careerbuilder.com/advice/so-you-want-to-become-a-financial-analyst
  • https://www.bls.gov/ooh/business-and-financial/financial-analysts.htm#tab-2

Quote about communication

  • http://money.usnews.com/careers/best-jobs/financial-analyst/reviews

What to expect

  • http://www.careerbuilder.com/advice/so-you-want-to-become-a-financial-analyst
  • https://www.bls.gov/ooh/business-and-financial/financial-analysts.htm#tab-3

Further training

  • http://www.finra.org/industry/registration-qualification
  • https://www.cfainstitute.org/programs/cfaprogram/Pages/index.aspx

Salary

  • https://www.bls.gov/ooh/business-and-financial/financial-analysts.htm

Places they work

  • https://www.monster.com/jobs/q-financial-analyst-jobs.aspx https://www.bls.gov/ooh/business-and-financial/financial-analysts.htm#tab-3

Commission

  • http://www.careerbuilder.com/advice/so-you-want-to-become-a-financial-analyst

Other titles

  • https://www.bls.gov/ooh/business-and-financial/financial-analysts.htm#tab-2 https://www.mynextmove.org/profile/summ