Introduction
This paper entails a detailed discussion and summary of what I experienced and learnt through my participation in the Financial Markets course, which formed part of my graduate studies. Having recently joined the financial services sector as a junior analyst at a large investment bank, my participation in this course has enabled me to gain practical and knowledgeable financial insights that I have applied both at work, and in other real life situations. Prior to joining the financial services sector, I previously worked as a litigation attorney in a mid-sized law firm located within my metropolis. My participation in this course has, therefore, equipped me with the relevant foundational skills and knowledge base which will enable me to build a solid career in my new found profession. In this paper, I will discuss in detail these experiences and how they have impacted my life since I undertook the Financial Markets course.
Economics
Economics is one of the sub-topics of the Financial Markets course which I found to be very interesting and relevant to my chosen career, as well as my day-to-day activities. My participation in this course introduced me to the basic principles of demand and supply where I learned how these forces practically influence all the aspects of our contemporary living spaces. This basic understanding encouraged me to study further on this topic, and as a result, I have gained solid economic analytical skills that I now apply in all spheres of my life.
The study of Economics has also enabled me to understand other real life aspects where the market forces of demand and supply are also manifested. For example, I am now able to understand why the prices of the commodities at the grocery store fluctuate at times based on the availability or lack of certain specific commodities at a particular moment in time. I have also been able to understand why, for instance, traffic jams tend to occur during rush hours and not during other low peak hours. This understanding of these real life issues is pegged entirely on the interplay of the market forces of demand and supply.
Stock Markets
My participation in the Financial Markets course also enabled me to gain a foundational understanding of the operation of various stock markets across the globe and within the United States. As previously mentioned, my career background was previously in the legal profession. Therefore, I did not have a clue of how the stock markets operated especially since the biggest of these markets are found in the United States.
My further readings on this topic have enabled me to understand the fundamental concepts of the operation of stock markets such as the bull and bear runs. I have also been able to understand certain trading strategies that are used by the seasoned traders such as the concept of short-selling. This concept entails the selling of shares when they are at a higher price and their subsequent buyback when they decline to certain set levels, thereby making a profit.
In this course, I have also learned about the workings of the various actual stock markets. These markets include the New York Stock Exchange, which is the largest stock market in the world by virtue of market capitalization. I also learnt about the NASDAQ, which is a stock market that is solely dedicated to the sale and purchase of shares of technology companies. These critical insights have enabled me to become a better stock market investor in my personal and professional pursuits.
Currency Markets
The Financial Markets course also introduced me to the fundamental aspects of the currency markets that are collectively referred to as the Forex Market. Under this topic, I learnt about various currency pairs such as those of the US Dollar with other foreign currencies for example the Euro, Yen, Swiss Franc, Australian and Canadian Dollars among many other similar pairs.
This basic introduction to this market encouraged me to research further on the Forex Market where I gained a deep insight into the factors that influence its overall operations. These factors include the price of one currency against another, when compared to the pricing of the same currency with that of a second country and so forth.
Through this course, I also learnt about how the currency markets impact the economic performance of a country through the prevailing exchange rate. This impact is mainly significant in the countries whose economic activities are export-oriented such as Japan and China. In such instances, these countries prefer their exchange rates to remain low, so as to ensure that their exports are competitively priced in the international markets. In numerous instances, these countries will initiate measures through their central banks to interfere with these prevailing exchange rates and to ensure that they remain at their preferred levels.
My understanding of the currency markets has not only assisted my professional career growth, but it has also enabled me to make rational decisions in regards to my personal life. Recently, as I was importing a piece of equipment which I needed for my personal use from a foreign country, I was able to apply my new found knowledge accordingly. This application resulted in me paying a lower price for the equipment since I negotiated for a better exchange rate with the financial institution involved in the transaction.
Bond Markets
Finally, the financial Markets course introduced me into the financial world of the bond markets. Through this course, I was able to learn about the various types of bond instruments found in the United States. These instruments include the Treasury Bills, Bonds and Notes, with the main distinction between them being their respective duration or maturity levels. I was also able to learn about other international bond instruments such as the German Bunds and the British Gilts that are issued in these respective countries among many other similar types of bonds.
The knowledge and skills that I have acquired in relation to the bond markets in this course have enabled me to grow at a personal and professional level. In the course of my career, I have learnt about various concepts relating to the bond market such as the Yield-to-Maturity, and the Yield Curve. I also learnt about the factors that influence the bond prices through this course, and the inverse relationship between these bond yields and the average maturity of the bonds.
This course also enabled me to learn about how Central banks across the world implement their monetary policies by buying or selling bonds, so as to achieve their preferred objectives and goals. This knowledge has increased my sophistication as a bond investor, and it has enabled me to create a portfolio that contains both bond and stock securities. The inverse relationship between the performances of these two distinct instruments will ensure that my portfolio remains profitable, given the prevailing business cycle of the economy.
Conclusion
In this paper, I have highlighted some of the main lessons that I learnt and the skills which I acquired from my participation in the Financial Markets course. I have demonstrated these lessons and experiences within the realm of my current career, and also in my day-to-day activities where these skills have come in handy at times.
In summary, the main lessons that learnt from this course are the theoretical concepts of Economics, and how these theories are applied in everyday life as well as in career fields such as the financial services sector. I have also gained deeper perspectives relating to my understanding of the operations of various aspects of the financial markets. In closing, the Financial Markets course has enabled me to create a solid skills and knowledge foundation which will assist me to pursue my career objectives both in the long and short runs.
