The other shoe has dropped – offficially. Bear Stearns, big investment bank, announced to the Street today it needed help in a big way. Bear Stearns has looked to JP Morgan and the government for emergency help. Bear Stearns lost 50% of its value while dragging down the Dow by 200 points.
Did you really think that positive blip earlier this week was a “sign” of better things to come? Think again. We believe we are in for a rough ride and there is more of this to come. Tip of the iceberg? We hope not. Be ready for an extended period of rocky hedge fund employment waters.
If you are considering making a career change right now, be careful. There is likely going to be some “downward pressure” in your current role. Expect some downsizing, increased responsibilities and lower bonuses. If you are a top performer, there is still plenty of opportunity. If you continue to generate profits for the firm despite what is going on (remember when “hedge” meant “hedge”?), you are in higher demand than ever.
As always, we’ll keep a close eye on the hedge fund job market for you.