The Finance Whisperer

What Speed-dating Can Teach You About Fundraising

Right now, Breakers Palm Beach resort is flooded. With hedge fund professionals, that is. The annual networking conference of the Managed Funds Association is taking place this week, and managers, servicers and investors are trying to drum up new business while learning new tricks of the trade.

One tip? Treat the conversation as though you are speed-dating. (Personally, I think first date is more appropriate - if you tell a potential investor you only have 60 seconds to speak with him / her before moving on to bigger and better things, they probably won't be interested in you.) In fact, in one of the many exercises held at the conference, one hedge fund employee openly admitted to talking too much during the exercise while not addressing the investor's questions and concerns.

So, if you work in the hedge fund business, it may be wise to take some of these tips to heart. And if you are interested in working in the hedge fund business, check out a few hedge fund job descriptions to see if you are cut out for the job.

-The Finance Whisperer

Quantitative Easing is Anything but Easy

The Fed's voting committee recently decided to continue its quantitative easing plan and keep interest rates incredibly low. Even though the $600 billion bond buyout program had some inflation hawks worried, the vote was unanimous.

Clearly, the short-term concern is inflation - will prices rise as the Fed attempts to spark growth by pumping more money into the economy? The voting committee, especially those considered inflation doves, think not. In fact, in their official statement offered after the vote, the Fed claims that indicators of inflation are, for the most part, not present at this time.

Seeing as the Fed seems to have short-term concerns under control, it is about time to focus on long-term effects. What happens when the buyout program comes to an end and the buying stops? Who steps in for the Fed? Will foreign buyers still be interested? The answers: interest rates will more than likely rise, there really isn't a natural buyer to step in, and foreign buyers will most likely begin to sell, causing interest rates to spike even higher.

So let's stop focusing on inflation. Unless, of course, it effects the Big Mac.

-The Finance Whisperer

No More Dollar Menu?

The recent surge in agricultural commodities has many people worried about inflation, especially when it comes to food costs. Even McDonald's is prepared to increase prices, but only "where it makes sense." Well, when you consider that the commodities with the largest cost spikes are corn, wheat, coffee, and cocoa - which all appear on McDonald's menu in some form or another - it seems that it will eventually make sense for them to raise prices across the board.

McDonald's reported that the McCafe specialty drinks helped boost their Q4 earnings. But as prices for coffee rise, will McCafe really be that successful? Making a McCafe Mocha obviously takes more time and labor to make than a Big Mac (when have you ever seen a Big Mac made right before your eyes?). Now that it may take more money, too, I doubt McDonald's will rely so heavily on the coffee.

And unless you want a small soft drink or a side salad, you may go hungry if you only order off the dollar menu. Good luck finding something on that menu that doesn't somehow involve corn, wheat, coffee, or cocoa - and those aren't even the only commodities that have surged lately.

Whatever they decide, it will certainly be interesting to see which prices McDonald's raises over the next few months (fingers crossed it's not the Big Mac).

-The Finance Whisperer

The Sky Might Not Be Falling

In recent weeks, the fear of municipal defaults in 2011 have grown - most likely due to a certain analyst's "Chicken Little" stance on the municipal bond market. But is the muni situation really this grave?

According to leading economists and analysts, probably not. In addition to signs that the muni market is actually improving, many analysts believe that investors would benefit by maintaining a "buy" position in times like these. "The bottom line is that sky-is-falling reports about the muni market are lacking in evidence," says Christopher Hoene, director of research at the National League of Cities in Washington, who also points out that only 4 cities and counties have defaulted on debt since the 1970's.

So is all the panic over the muni market really necessary? In my opinion, no. But I want to know what you think. Leave comments below!

-The Finance Whisperer

Would You Move to Asia?

As investment banks continue to open branches and offices in Asia, they are aggressively sourcing and hiring to build out their teams. But what does this mean for hiring in the financial services industry, specifically in the US?

For starters, now that people are more willing to look for new opportunities and leave their current positions, there will more turnover than usual after the 2011 bonus season comes to an end. And considering the range of opportunities that need to be filled overseas, especially in China and Hong Kong, making a career move - literally - may be the most attractive option for some professionals.

This trend began in 2010 when the industry saw many graduating MBAs accept offers in Asia. But the real question is whether the appeal of overseas hiring will remain once the US economy truly shows signs of recovery.

In my opinion, it will. Even though the trend of finding work abroad always increases during a recession, firms have not shown as strong a desire to increase headcount overseas in years past.

-The Finance Whisperer

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-The Finance Whisperer