Financial Services Hiring at Senior Levels Remains Robust
Credit concerns have not eroded optimism about 2008. Money managers remain bullish for the year ahead despite the subprime meltdown and worries over a shrinking U.S. economy, according to Russell Investments’ latest survey of investment managers, Investment Manager Outlook. Optimists say any slowdown will likely be confined to areas within fixed-income, which bodes well for the outlook on financial services jobs.
Executive search firm, A.E. Feldman, reports that hiring at senior levels remains robust. Healthy demand for qualified professionals continues unabated at hedge funds, accounting firms and law firms. The recruiting firm also sees persistent demand for quantitative analysts and risk management professionals. Infrastructure finance jobs are also opening up for candidates with backgrounds in private equity and experience with credit and complex financial models.
Money managers say the future looks bright, according to Russell’s Investment Manager Outlook, which polled more than 290 senior-level investment professionals. A whopping 76% of money managers queried say U.S. equity markets will see gains in 2008. Nearly one-third of respondents, 30%, anticipate returns greater than 10%. More than half, 54%, believe the markets will gain up to 10%. Only 15% of those polled expect markets to decline next year.
“Attractive valuation levels and the potential of the global economy are pointing managers towards stocks in 2008,” said Randy Lert, Chief Portfolio Strategist at Russell Investments. “The credit crunch and slowing U.S. economy do raise concerns, but manager optimism for U.S. stocks appears undimmed from that of one year ago.”
Managers prefer large-cap growth to every other asset class, though they do see opportunity in mid-cap and small-cap growth as well. According to the Russell survey, 75% of investment managers responding are bullish on large-cap growth.
“The managers are favoring growth over value, whether it’s large-cap, mid-cap or small-cap. Generally speaking, value stocks are more economically sensitive to the economy, and the managers appear to be positioning themselves so they are not overexposed to value should the economy drag,” said Lert. “Value stocks had such a long and strong run. Many managers expect the growth run of 2007 is likely to continue into 2008.”
On a separate note, InvestmentNews also released the results of its 2008 Investment Outlook Poll, an analysis of financial advisers’ outlook on the economy and the financial markets. So, will the U.S. economy go into recession in 2008? Well, 76% of the advisers surveyed say the answer to that question is no. In fact, respondents expect the U.S. equity markets to gain about 7% next year. Additionally, more than 64% of those polled say they think the credit markets will improve in the coming months.
