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A day in the life of a currency strategist would seem to be
replete with economical complexities, mathematical conundrums,
and political brainbenders. But Marc Chandler, Senior Vice
President and Chief Currency Strategist at HSBC Bank USA, has
boiled down his accomplishments into a series of pithy
one-liners. He shared his pearls of wisdom with Fletcher
students on Thursday, September 23, 2004 as part of the
International Business Program’s Global Speaker Series and used
his memorable catchphrases to cogently illustrate the winding
but fulfilling path that has led him to success and happiness.
“Don’t make any assumptions.”
Don’t let the expensive suit, tie, and close-cropped hair fool
you; Chandler is not your typical currency trader. The banking
world is one that typically supports Republican candidates and
conservative governmental programs. Bucking the trend (and
frustrating his coworkers), Chandler is an unabashed Democrat.
He serves as an informal advisor to Senator John Kerry’s
presidential campaign on economic issues, he worked for Rev.
Jesse Jackson’s 1988 run for the White House, and is a diehard
believer in the Head Start child development program. When his
colleagues call him a Socialist, he lets it roll right off his
back.
“Think outside the box.”
Chandler compared the hierarchy of a major corporation to that
of an army. There is a clear chain of command, and questioning
the decisions of your superiors is generally not recommended.
But to succeed, you must think creatively, and when appropriate,
stab out on your own. When he was feeling constrained, he
decided, as he put it, to switch platoons. He has held a variety
of positions in the industry with a number of banks, most
recently moving from Mellon Bank to HSBC in 2001. According to
Chandler, the marketplace rewards people who have their own
opinion. On Wall Street, those rewards come in the form of jobs
and money.
“You don’t have to be right, you just have to be
interesting.”
In financial markets, “most people can’t be right even 60
percent of the time,” said Chandler. Chandler fancies himself “a
story-teller.” If he can tell an interesting and convincing
story about the currencies market, it will make him credible
enough for people to take his investment advice. His
story-telling skills failed him on one occasion, however. When
he moved to a remote part of Connecticut in 1993 to work for a
hedge fund, he told his wife that with the money he would make,
they would both be able to retire in five years. But several
years later, when international economies began to weaken and
currencies collapsed, and the fund’s capital shrunk from $180
million to $40 million, Chandler found himself not on the golf
course in Florida, but rather back in Manhattan looking for a
job. “Mexico still owes me some money,” Chandler told the
students, only half-kidding.
“If you want to get rich, rob a bank or deal drugs.”
Chandler asserts that it is not a paycheck that drives him and
pushes him to succeed. He thrives on the thrill and challenge of
being a currency strategist, and relishes the role he plays in
moving global markets. Chandler wakes up at 4:00 a.m. every day
– without an alarm clock. “I’m excited about what I do,”
Chandler said, and it’s that drive that gets him out of bed in
the morning and makes him always the first person to arrive at
the bank, at 5 a.m. sharp. With a master’s in American History
and another in International Affairs, Chandler is clearly not
just an economics whiz. He cherishes the fact that he gets to
“write, read, and talk to people” all day: “If I can make money
at the same time, great.”
The KISS method: “Keep it simple, stupid.”
When you’re looking at variables, keep in mind the crowd
behavior analysis, which Chandler says is simple and is right
every time: “individuals change, crowds never do.” To gain
leverage in market positioning, Chandler says to “buy the rumor,
sell the fact;” for example in regard to political news about an
unstable country. But it’s not just in currency strategy that
Chandler applies this motto. He advises people to pursue
interests outside of their careers that they find fulfilling.
Chandler is “deeply committed” to New York, and on top of his
HSBC job, teaches continuing education classes at NYU on
international relations.
Although he presumably thinks up most of his slogans himself,
Chandler did borrow one from perhaps the greatest writer of
proverbs – William Shakespeare – but only to refute it. “Neither
borrower nor lender be,” said Hamlet. Bad advice, said Chandler.
“Credit makes the world go ‘round,” and it has gotten him to
where he is today. Chandler has just begun a four-month, fully
paid, fully insured sabbatical from HSBC to explore, ponder,
reflect, and think about his future. No doubt he’ll return with
some new one-liners to add to his collection.
Article by Evan Pressman, MALD '05
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