Learning Notes -- 9/16/07

The New York Times had a fantastic article on a young entrepreneur named Gabriel Hammond, a founding partner of Alerian Capital Management.

• Hammond started on Wall Street and three years onto the job, decided to fore-go his MBA and start a hedge fund; raising 5 million dollars to do so.
• Successful traders said in interviews that they relished the challenge of their jobs, in addition to the lofty paychecks
• At funds that manage $1 billion to $3 billion, people with just a few years of finance experience will make $337,000 this year, and those with five to nine years experience will average $830,000.
• Key Words: Hedge funds, private equity banking, investment banks, certified financial adviser.

Apple: Missed opportunity to gain market share with lack of retail presence due to bad retailer relationships.

Credit market puts pressure on large-cap stocks. However, the feds response to lower interest rates could put downward pressure on the dollar. This will favor large corporations with global reach, i.e.blue-chip stocks.

Housing market will continue to be unstable in the near future. Foreclosure rates are rising. Lenders pulling back are lowering housing prices. Climbing mortgage rates could continue to push down housing prices.

10 year Treasury notes tend to be a barometer for longer-term mortgage rates. Brokers don't find you the best deal all the time.

Key words: Mortgage Bankers Association, S & P/ Case-Shiller Housing indices