Why Financial Professionals Need To Be Economists

The current Managing Director of DCM (Duquesne Capital Management) is Christian Broda, a financial professional and economist based in New York. Christian Broda started off as a professor where he spent 5 years teaching in the Booth Business School (Chicago). He was working as a financial professional during that time in Lehmann/Barclay’s Capital as well. Given his financial and economic background, Christian Broda is a strong believer of the fact that a good knowledge of economics can help financial professionals make a mark in the industry.

Here are a few reasons why Christian Broda thinks that financial professionals need to be economists first –

Getting A Measure On Unintended Results and Consequences – From micro to macro level, every economic decision has the potential to develop certain unintended features or unexpected results. For financial professionals, even a little thing can tip the scales in the favor of someone else. Economics helps these professionals to not only predict such consequences but also measure them as much as possible. This can be extremely valuable when it comes to financial decision, especially the big ones.

Understanding The Impact Of Innocuous Things On The World – The global economy only has a few strong and stable players. The rest are all fickle with changeable economies that fluctuate with little decisions and interest rate problems. Financial professionals’ livelihood depends on understanding the impact of seemingly innocuous decisions on the world economy and if they fail to do so, they might end up costing themselves or their clients tons of money. With a firm knowledge of economics, this is made possible in an efficient manner.

Great For Personal Financial Decisions As Well – Ultimately, most financial professionals are in the field because they want to make a difference in their own lives. They want to be more successful professionally and personally, grow as individuals, and achieve professional experience that is unmatched by any other. Economics can help financial professionals in this area as well. This is a sector where professionals learn about which personal financial decisions are lucrative and which ones are not. On top of that, a financial professional with a firm grip on all the financial concepts of economics would find multiple job offers, profiles and professional opportunities knocking at their doors.

Ultimately, a finance professional needs all round knowledge in all related fields of finance. For instance, a project manager in an engineering company needs a good idea about engineering and must also have excellent project management skills. Both these studies are separate but managers who are dedicated towards self-improvement make it a point to achieve excellence in both the fields. Similarly, learning about economics can help financial professionals in understanding the rules of the game instead of just following them.

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