The Investment Professional - Volume 2, Number 1, Winter 2009

Abstract
The Arithmetic of Reading and Writing: The Paradox of the
College Savings Account
by David H. Goldenberg, Michael D. Goldenberg, and Jonathan D. Linton

Careers
Tragedians in the Workplace:
Three Flaws Fatal to Career Survival
by Vicky Oliver

Interview
The Old Guard Wants New Blood: Former SEC Chairs Weigh In
on the Financial Crisis
by Lori Pizzani

Book Review
Strangles and Straddles:
Review of Commodity Options: Trading and Hedging Volatility in the World’s Most Lucrative Market
by Phyllis Feinberg

Final Analysis
Pulp Finance
by Phyllis Feinberg

Article Archive
Volume 2, Number 1, Winter 2009

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Cover Story
The Greater Fool Theory: Managing and Modeling Risk
by Neil A. O’Hara
In our expose of the snafus that plague the management of risk today, a tough-talking lineup of industry insiders speaks out about the widespread confusion attending the real function of VaR, the perils of ignoring the Monte Carlo simulation in calculating volatility, the fundamental flaws in risk models, and the false allure of the CDS. In this global game in which everyone wants to play on the same side, we all may end up losing.

Features
The Hard Sell: SEC in a Quandary over Its Push for IFRS
by Amy E. Buttell
As the US transition to a new, international standard for financial reporting threatens to become an inevitability, those in the accounting business applaud, while investment and finance professionals reel before the implications. Some of the industry’s leading voices speak their piece in this special report, which picks apart the plausibility of the IASB’s claims of transparency and consistency, exposing the extent to which the switch from US GAAP will rock Wall Street to its very foundations.

Reprogramming the Mind:
A Cognitive View of Stress, Performance, and Treatment for Wall Street’s Wounded
by Brett N. Steenbarger
Dr. Brett Steenbarger has spent thirty years as a clinical psychologist specializing in therapy for members of the financial workforce. Steenbarger is himself a trader, and the author of the critically acclaimed blog TraderFeed. That privileged insider perspective informs his insights on the origins of stress among investors and traders, the effect of stress on performance, and nontraditional methods of counseling for investment professionals.

Coming of Age:
A Brief History of the Changing Role of the Securities Analyst
by Charles D. Ellis
Charley Ellis, founder of Greenwich Associates and the longtime past president of CFA Institute, spins the tale of how the lowly “statistician” tier of the investment hierarchy managed to evolve into a coveted, respected, rewarded position. Ellis takes us through the insular information-sharing of the early days, Ben Graham’s fight to raise standards, the seduction of the big investment banks by the power of analysts’ information, the glamour and romance that came to be associated with the position, and the shock that shook the industry when corruption cases began to headline the news at the start of the millennium.

Confidence Men:
Talking with Brett Steenbarger and Stuart Schneiderman
by Adam Sterling
They’re trusted psychotherapists, lauded authors, much-hyped bloggers, and sought-after career coaches, so when you’re looking for lucidity in today’s financial nightmare, the couches of Brett Steenbarger and Stuart Schneiderman are where you want to lay your head. The doctors offer advice that’s specific and actionable—if not always comforting. From the danger of hope, to the advantage of shame; from how to reshape your career, to how to take control of an interview—they’re good for what ails you.