HH #12

The FED’s unprecedented plan to raise rates at the fastest pace in history may have cured our inflationary troubles. Why? Because the June CPI report printed a meager 3% YoY increase! This is an incredible improvement from the heinous June 2022 CPI report printing a 9.1% YoY increase.

For anyone interviewing, these CPI reports are KEY details that should be referenced in any markets-related interview question. The FED typically targets YoY inflation of 2-3%. So the question is, are we back? Are we done with the inflationary pressures felt throughout 2022?

Over the last fiscal quarter, we have seen consistent improvement across nearly all inflation-related reports. As a result of this improvement, the market has been catapulted into a bull market. However, if next month’s report sucks then we can be sure to experience some level of a market correction.

On another note, short-term success does not always translate to long-term prosperity. Plenty of investors think that the rapid rise in rates should cause more damage across earnings, lending, valuation, etc. If you pay attention to commercial real estate, you can see that certain asset classes have been getting smoked. Office has been hit hard with certain assets being foreclosed or revalued at major discounts. Real estate has also been discounted in areas of the country that experienced tremendous growth throughout Covid (Phoenix, Boston, practically anywhere in Texas).

The piece of the puzzle that is missing is the fact that many large corporations have not reported significant negative impacts to their earnings. Theoretically, rising rates should have boosted the debt burden and negatively impacted cash flow to shareholders. (note: LARGE, household-name corporations; I acknowledged rising levels of bankruptcies/defaults in last week’s newsletter)

During an interview, be optimistic about the direction our economy is headed, but don’t be stupid and understate the lagging effect interest rates can have on leveraged assets unable to refinance in this market.

Banking: More full-time applications have been released over the last two weeks. In this update, we have Needham & Co as well as BlackArch Partners joining the list. For SA, Solomon re-opened their app for positions in NYC and Chicago. TAP Advisors has also opened up their app.

Consulting:

A few boutique apps have been released over the last two weeks. Firms like Trivista, which does operations and supply chain consulting, released their SA position and Mars and Co released their full-time app. Still waiting on the more prestigious firms like EY Parthenon to open up, but the consulting space is certainly heating up!

Buyside: Not much to add here. There is a new app for a REPE shop and a private credit listing.

Two new initiatives: HoosHelpers Study Buddies and industry-level information sessions.

1. HH Study Buddies: Plenty of you have shown interest in finding other students going through similar recruiting processes. Drop us an e-mail with the subject line “Study Buddy” and tell us the type of recruiting you’re doing (banking/consulting/buyside) and we will match you with other HH users.

2. Info Sessions: Want to learn about what banking/consulting/buyside actually is and how they’re interconnected? Shoot us an e-mail with the subject line “Info Session” and I will host a call over Zoom to give attendees a rundown of what actually happens in these industries. This call will likely take place on a Sunday.

LinkedIn Promotion: HH is officially on LinkedIn: HoosHelpers and we would love it if you guys tag us upon receiving your phenomenal job offers! You tag us and we send you $5 as a thanks. On LinkedIn, we post weekly tips/things to consider related to the job market.

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Happy to help,

Hoos Helpers

HH #12