Harvard grads chase the bull market

When Harvard MBA graduates start rushing to take up jobs on Wall Street, it’s time to get out of US equities. That’s according to research from Soifer Consulting. If 30% or more of these grads take jobs in investment banking, fund management or private equity, history suggests that it’s a good long term sell signal for shares. Sell signals were generated from 2000 to 2002 and in 1987 as well. The bad news is that the 2 most recent annual statistics from Harvard Business School show that 37% of the Class of 2006 have decided to take market sensitive jobs, following the 30% of the Class of 2005 into the world of red braces, Blackberries and bonus anxiety. So we’ve now had two years in a row where the long term sell signal has been triggered. Burger flipping grads in 2007?

The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.

Jim Leaviss

Job Title: CIO Public Fixed Income

Specialist Subjects: Macro economics and fixed interest asset allocation

Likes: Cycling, factory records, dim sum

Heroes: Brian Clough, Morrissey, Neil Armstrong

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