What Does A Financial Advisor Do? (1)

Financial analysts provide guidance to businesses and individuals making investment decisions. In the late 1980’s Gary Brinson (a noted money manager and financial analyst) and his colleagues published sophisticated statistical studies which concluded that about 90% of the return variability across different investment portfolios was due to asset allocation.Financial Analysts

Empirical tests demonstrate a positive relation between the percentage of analysts revising forecasts soon after interim earnings announcements and firm‐specific ERCs, the interaction between the magnitude of earnings surprises, ERCs, and earnings‐returns associations, and pre‐announcement dispersion in forecasts.Financial Analysts

There has been a lack of investor confidence since 2002 with regard to the accuracy of companies’ financial statements, and investors are questioning analysts’ responsibilities and potential conflicts of interest in making recommendations to buy or sell financial products.

The two main types of financial analysts are sell side analysts, who provide information to financial services companies that sell stocks, bonds, and other investments to the public, and buy side analysts, who provide services for institutional investors who have a lot of money to invest.Financial Analysts

Opportunities will open up primarily through employment increase, but also because of the need to replace retiring financial and investment analysts. They must understand how new regulations, policies, and political and economic trends may impact the investments they are watching. If I can offer some insight, I’m currently working with a Big 4 firm, and working on the jump to a financial services job. Compare the job duties, education, job growth, and pay of financial analysts with similar occupations. He/ she should also possess good communication skills as most them have to write reports or present complex financial concepts and strategies to colleagues as well as clients. Like corporate analysts and advisors, personal finance advisors are strongly recommended to posses a degree in accounting, finance, economics, business mathematics, or law to best help their clients.