EVALUATION NYU Stern’s student-investment newsletter latest edition is out! See the first issue here.
The latest edition is reprinted below with permission.
Among the many lessons that we’ve learned from the aftermath of the 2008-09 global economic crisis is that governments play a major role in the financial markets. In the last six years, central banks around the world have injected massive amounts of capital in order to support and even inflate financial markets. The U.S. Federal Reserve has injected $3.6 trillion through three rounds of quantitative easing since 2008. The Bank of Japan recently shocked the markets by upping its annual purchases of JGBs from 50 to 80 trillion Yen (from $430 to $680 billion). In total, major central banks have expanded their balance sheets by approximately $6 trillion1 since 2009.
In his first-quarter letter to investors of Greenlight Capital, David Einhorn lashed out at regulators. He claimed that the market is "fractured and possibly in the process of breaking completely." Q1 2021 hedge fund letters, conferences and more Einhorn claimed that many market participants and policymakers have effectively succeeded in "defunding the regulators." He pointed Read More
While a rising tide lifts all boats, the last six years have been a not so subtle reminder that the “moon” (or government, extending the analogy) is a major factor controlling the tide. For the third issue of EVALUATION we elected to focus on two related areas of the market that are not commonly a part of the business school vernacular: Public Finance and Infrastructure Investing. These areas, located at the intersection of the private and public sectors, give us some insight into the interplay between investing and government
It is our pleasure to introduce the third issue of Stern’s student run investment newsletter, covering a range of topics in the public finance and infrastructure investing areas, in addition to some student-submitted investment ideas. We hope that you enjoy and take away a few new ideas. Finally, we would like to thank our interviewees for their time and contributions, as this would not be possible without their valuable insights. With that, happy reading!
Bryce & Ethan
Evaluation: Steven M. Fulop – Mayor of Jersey City
Steven attended Binghamton University, spent time studying at Oxford University in England, and graduated in 1999. After starting a career at Goldman Sachs in Chicago, he transferred back to New Jersey and bought a home in Jersey City. After the attacks of September 11, 2001, Steve made the life-altering decision to enlist in the United States Marine Corps. As a member of the 6th Engineer Support Battalion, he was deployed to Iraq. Steven and his unit were awarded the Overseas Service Ribbon, Meritorious Masts, and the Presidential Unit Citation. In 2004, Steve came to the attention of then-Mayor Glenn D. Cunningham, who persuaded and supported him in a primary run against Democratic Senator Robert Menendez. Although that campaign was unsuccessful, Steve’s enthusiasm for the political process led to a run for City Council in 2005. His upset victory over the incumbent Ward E councilman made Steven the youngest elected official on the Jersey City council. On May 14th, 2013, Steven won a decisive victory over incumbent Mayor Jerramiah T. Healy.
EVALUATION (EV): Mayor Fulop, thanks for taking the time to speak to us for our investing newsletter focused on public finance. Let’s start with your background, as it’s very interesting. After college you got a job at Goldman Sachs. Which group were you in?
Mayor Steven Fulop (SF): I was hired into asset management and then gradually moved into algo trading.
EVALUATION: After the September 11th attacks you made the life-altering decision to join the U.S. Marine Corps. Was that a difficult decision to make?
SF: I viewed military service as a partial payment for citizenship and was thankful that I came from an immigrant family. I’m thankful for a lot of things that this country has provided, and based on where I was situated in my life that was the right decision.
EVALUATION: In 2004 you ran for Congress against Democratic Senator Robert Menendez. Though unsuccessful, what lessons did you learn along the way?
SF: That was more of a suicide mission. I wasn’t really registered to vote prior to that. The Mayor at the time here had a feud with the sitting congressman and the Mayor was probably using me more for the fact that I had a background with no baggage. For me, I thought it was a once in a lifetime opportunity. I registered to vote around that election and realized that in this profession you can actually do some positive things if you’re in it for the right reasons. That has changed my life.
See full PDF here.