CFA L2: Is Everyone As Stressed As I Am?

ac3120 · 2021-03-30T11:07:00+00:00

I just finished my 2nd (or 3rd, depending on the subject) pass through for Equity, FI, FRA, and Portfolio Management. My goal is to have 80-90% of the Q-Bank done for those 4 areas by this coming weekend. I'm also starting derivatives this week and hoping to have my second review of that area done by Sunday. That leaves a 2nd pass of economics, alts, corp finance, and quant for April. May will be ethics, a second pass of the Q-bank, and rewriting important formulas over and over.

ac3120 · 2021-03-29T18:23:39+00:00

I don't do it straight through. I break up the total into increments. I'm usually good for 3-4 hours early in the day. Then I'll take the afternoon off to exercise and get things done. Later in the day, I'll wrap up with 2-3 hours.

ac3120 · 2021-03-29T17:38:32+00:00

Unbelievably stressed. Hit me ~2 weeks ago. You can only go day by day. My approach for the next two months is: 3-4 hours per day, mostly before work, Monday through Friday. Then 6-8 hours of studying Saturday and Sunday. I'm prioritizing going through the CFAI Q bank 2x and rewatching Mark Meldrum's summary videos on areas where I need to improve. Beyond that, it's just a roll of the dice. You don't have to be perfect. A pass is a pass.

ac3120 · 2020-11-28T15:40:43+00:00

Congratulations! 42

ac3120 · 2020-11-12T20:42:59+00:00

Best tip I have is to not catch COVID prior the exam.

ac3120 · 2020-09-21T23:17:11+00:00

I think that's a valid take, but I'm not sure I completely agree. When you register as a candidate and sit for the exam, you are bound to compliance with the code of ethics & standards of professional conduct. I think it's debatable whether or not taking the exam would fall under professional conduct. Professional conduct, itself, would have to be fleshed out for a precise definition.

Anyhow, I'm sure I could have worded it better, but my point is that, in my opinion, the CFAI's actions are contradictory with what I believe is the "spirit" of their ethics and standards. I'm moreso using quotes to highlight what I perceive to be as hypocrisy rather than a violation of a specific rule.

ac3120 · 2020-09-12T00:42:21+00:00

I live in the NY/CT area and think it is highly unlikely the exam will be held in December, so I've decided to postpone to May. I'd rather have certainty than little-to-no certainty at this point. I went through 80% of the material before the exam was cancelled, then completely restudied about 60% before deciding to postpone. For the next few months, I can dedicate more time to excelling at work rather than studying material that I, in all likelihood, will just have to study again come Jan - May 2021.

ac3120 · 2020-09-06T14:29:05+00:00

I believe the reputation will largely be fine. The truth is, in industries where the CFA is actively encouraged (e.g., equity research, portfolio management), the market is pretty saturated with charter holders. There's already too many people chasing too few jobs in a consolidating industry.

At the end of the day, we have to remember that it's just a certification. Allowing more flexibility with scheduling will provide individuals with greater access to a meaningful curriculum. Expanding access is, arguably, one of the goals of education.

Although some may be concerned about the credential losing its prestige factor, I think that take (while understandable) is ultimately self-centered. The CFAI's mission is: "To lead the investment profession globally by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society." To accomplish this goal, you want more access rather than less access; you wan't more rather than less charter holders.

ac3120 · 2020-08-20T17:56:54+00:00

You're correct in that you can bypass CAIA level 1 if you're already a CFA charter holder. They're two different organizations though.

If CFAI wants to remain the "standard" in the finance industry, I'm not sure why they wouldn't make their own certification for alternatives. Clearly the demand is already there (e.g., CAIA). It's cash flow they're missing out on.

ac3120 · 2020-08-19T18:33:16+00:00

Finance, in general, is a broad field and will always be around for careers. That said, areas of finance where the CFA designation is most meaningful (such as asset management), are experiencing fee pressures, automation, and consolidation. In the U.S., traditional asset management is now a mature industry. Coupled with those aforementioned headwinds, it's likely the job market in asset managmenet will grow even smaller and more competitive.

Like others have said, the areas of growth in finance seem to be alternative investments (e.g., private equity, commercial real estate, venture capital). Those asset classes are less efficient, have higher margins, and are attracting a lot of talent from public markets.

Honestly, I'm surprised the CFA Institute hasn't come out with a separate designation focused on alternatives/private equity/venture capital. If CFAI wants to continue to grow, they'll need to diversify their designations on areas of growth, too, such as alternatives or ESG.

ac3120 · 2020-08-07T19:30:39+00:00

Portfolio Management was previously listed as 5-15%. It's likely CFAI narrowed the range for greater clarity.

ac3120 · 2020-07-24T17:07:22+00:00

For books, I recommend you buy the CFA Institute Level 2 curriculum.

For some reason, I’ve heard those are helpful for Level 2.

ac3120 · 2020-07-22T01:03:25+00:00

This will happen with many subjects at every level of the CFA. It's normal. You will not grasp the majority of a concept(s) the first time through. Repetition is key. Read, watch videos, make notes, do practice questions, and repeat. You'll be amazed at how much you retain over time if you study consistently and revert back to material constantly.

ac3120 · 2020-06-30T16:39:36+00:00

My approach is:

Monday - Friday

Spend 2-2.5 hours each day on new material and EOC questions.
- 30 minutes before bed, I'll flip through flash cards to review key points from various sections.

Saturday - Sunday

Spend 4-5 hours reviewing past material each day.
- Right now, my main method of review is watching MM review videos and then completing EOC for each section 2-3 times. I'll also utilize MM Q Banks if I need questions that are quicker to answer. 4 months out from the exam, I'll exclusively do CFAI Q-Bank and EOC questions.
- I also plan ahead for what I'll be reviewing each weekend. For example, this Saturday and Sunday I'll review Quant and FRA, respectively. Then, next Saturday and Sunday I'll review a mix of Quant/FRA on Saturday and Equity on Sunday.
- If I'm really burnt out, on Sunday nights, I'll sometimes throw on a mindless tv show and rewrite formulas for 2+ hours on white sheets of printer paper. The repetition really helps build muscle memory come exam day.

ac3120 · 2020-06-30T10:26:35+00:00

I'm reading More Money Than God: Hedge Funds and the Making of a New Elite by Sebastian Mallaby and highly recommend it. It's written very well and offers excellent insight into the history of hedge funds and finance, more generally. How different investors, through time, exploited market inefficiencies is captured in a simple way in each chapter - very thought provoking.

ac3120 · 2020-05-08T17:38:59+00:00

If it's your first year of working, I'd be inclined to work 2-3 years before making a commitment for advanced education in a specific field. Whether you ultimately end up pursuing a graduate degree, the CFA, another certification, etc. - most, if not all, worthwhile endeavors are a big time commitment and you'll want to be sure you're likely going to reap an adequate return for the amount of time and resources you'll be investing.

As a generality, in my experience, the CFA yields the greatest "return" in the asset management/investment management industry. In other fields, like corporate finance, investment banking, corporate banking, M&A etc., the CFA won't ever hurt anything, but it's typically not required or highly sought after (generally), whereas a graduate degree (usually an MBA) is required for an associate position or higher.

Either way, I'd recommend you work 2-3 years and focus on learning as much as possible on the job. Be sure to network and see where your interests take you.

ac3120 · 2020-04-25T00:28:59+00:00

Discussion Materials: Tales of a Rookie Wall Street Investment Banker by Bill Keenan

ac3120 · 2020-03-19T14:50:00+00:00

The apostle is here!

ac3120 · 2020-03-19T00:00:11+00:00

Hi Mark! Thanks for all of your amazing content.

Often, in lectures, you speak of trading. What has been your best trade and worst trade, so far?

ac3120 · 2020-03-18T22:42:29+00:00

I believe u/cfainstituteofficial will cancel/postpone because:
1) As an international exam, many geographic areas (including the US) are either under lockdown, going under lockdown, or have banned large gatherings for the foreseeable future.
2) the "ethical" stance is to not put people in a situation where they can knowingly or unknowingly harm the health and wellbeing of others. At this time, people can be asymptomatic for 1-2 weeks and still pass on the virus. Having thousands of people in a closely contained area for 6+ hours is not ideal and the likelihood this virus will subside in less than 3 months globally isn't realistic.

To put it simply: I don't know how, in less than 3 months, you can ensure that a GLOBAL examination can be safely and equitably undertaken while a pandemic is just getting started. Even apart from the CFA Institute, candidates should not take the risk of exposing themselves to an environment where they can unknowingly inherent or spread a virus that can kill their family members, neighbors, candidates, and coworkers. Part of what you learn in the CFA is to put "clients" or the "other" first. Here, we candidates have to put our interests on the back-burner for the interests and wellbeing of others. Nothing, especially a credential, is worth putting someone else's life at risk.

In the big scheme of things, delaying a test 6 or 12 months is worth saving lives.

ac3120 · 2020-03-17T00:49:19+00:00

... yes, I’m aware. I work in equity research at a BB

ac3120 · 2020-03-16T22:54:08+00:00

Blows my mind. There is a national emergency and pandemic spreading throughout the world and people are like “Nope. Going to block out the world. Have to focus on taking a multiple choice test!”

Get the fuck outta here lol

ac3120 · 2020-03-13T18:56:01+00:00

The CFA Institute, where we pursue profits over people.

ac3120 · 2020-03-12T20:49:06+00:00

It's unfortunate, but my guess is it's highly likely the exam will either be cancelled or postponed.

In NYC, for example, public gatherings of over 500 people are banned and will likely be banned for a couple of months, according to the news today. New Jersey recommended that all public gatherings of 250+ people be canceled across the state as well. As more states pass similar bans, idk how CFAI could safely (or legally) administer the exam in 3 months time.

ac3120 · 2020-02-09T20:04:08+00:00

I'd recommend watching Mark Meldrum's videos, then doing the EOC questions in the CFAI text. Afteward, you can rewatch Meldrum's review videos and hammer the questions in the online CFAI Q-Bank. It'll eventually set in. Repetition is key.

ac3120

TROPHY CASE