What finance careers are more aligned with Economics?
I’m currently a sophomore majoring in mathematics and minoring in Economics. I find studying markets and macroeconomics fascinating, but I’m less enthusiastic about building DCF models or evaluating individual stocks. Initially, I applied to investment banking positions at several bulge bracket firms without a clear direction.
I’ve noticed that many global market portfolio managers tend to concentrate on fixed income, but it seems that fixed income trading is increasingly becoming automated and headcounts are declining. Is there still room for macro-focused roles on the trading floor? Or are the opportunities for someone with a macro interest mainly confined to equity research, credit research, or public policy positions?
Just to give you some more context, I’m at an Ivy League school and performing well academically, but I don’t feel that I have the skills to pursue a quant career, so that option is off the table for me.
One response
It’s great to hear about your interest in Economics and markets! There are definitely finance careers that lean more heavily on Economics and macroeconomic analysis, which might suit your interests better than traditional investment banking or quant roles.
Macro Research Analyst: Many investment firms and hedge funds look for analysts who can study and interpret macroeconomic trends and their implications on various markets. This role involves analyzing economic indicators and forecasts and communicating insights to portfolio managers or clients.
Economist in Financial Institutions: Central banks, think tanks, and other financial institutions often hire economists to analyze policy implications and economic conditions. These positions can involve working on monetary policy, fiscal policy, or economic forecasting.
Global Macro Investing: Some hedge funds pursue global macro strategies, which involve making investment decisions based on macroeconomic trends and geopolitical events. This would require a strong understanding of Economics and how it affects different asset classes.
Credit Research Analyst: While this may cover fixed income, it often has a significant macro component, assessing how economic factors affect credit risk and default probabilities of various issuers. If you can find a role focused on macroeconomic trends and their implications for credit markets, it could be a good fit.
Economic Consulting: Firms that provide consulting services often require analysis on how macroeconomic trends can affect businesses or industries. This could involve working on projects that influence corporate strategy, regulatory changes, or public policy.
Public Policy Research: If you’re interested in the intersection of economics and policy, consider roles with think tanks or non-profits that focus on economic issues. This can involve research on policy impacts, advocacy, or advising governmental entities.
Risk Management: Some firms seek individuals who understand macroeconomic trends to help assess and mitigate risks. This role often involves analyzing economic scenarios and their potential impact on a firm’s portfolio.
While automated trading is on the rise, there are still ample opportunities for macro-focused roles that rely on economic analysis. Leverage your strengths in mathematics and economics, and don’t hesitate to seek internships or entry-level positions that align with your interests. Networking with professionals in these areas can also help you discover hidden opportunities that suit your passion for macroeconomics. Good luck!