Navigating The Exam Delay - Part 2

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Here is Part 2 of my study tips to help you deal with the exam postponement. Be sure to read Part 1 here.

So in the first Part I gave the Overview and set out 3 strategies for dealing with the delay. 

Today we wrap up by talking about the remaining trio. 

Motivation

It can be quite challenging to stay driven till December 2020 especially with the pandemic spreading throughout the world. Some thoughts:

  • Control what you can, ignore what you can’t control. There is a LOT you can control including your health, fitness, grit, focus, discipline and motivation.

  • If you had started late or not even started studying for June 2020 (I am not going to ask why!), this delay is a blessing.

  • The postponement is a mere delay, not defeat. It can work in your favor due to the benefit of Mastery (see first post).

  • It’s like a war where you have more time to prep. Refine your study and exam strategies

  • Do NOT waste time over thinking about pass rates in June 2020 vs December 2020 vs June 2021. Just go and write the exam 

But eight months is still a very long time, even to prepare for Level II or Level III from scratch! So how do you stay focused and keep learning without hitting the CFA books? I have two ideas for you and those are the other two Ms.

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Markets

The COVID-19 Virus had led to markets crashing and Governments and companies scrambling to find solutions. Effectively what we are seeing is a finance class in practice. Just think:

  • In Economics you are seeing the rapid deployment of fiscal and monetary policy to an unprecedented extent, with varying degrees of effectiveness. 

  • In equity markets, analysts are looking at history and using Quants to calculate Means, correlations and examine animal entrails (aka Technical Analysis) in a desperate attempt to forecast. 

  • Companies are being hit hard and financial results in Q2 and Q3 will expose big strengths and weaknesses, providing fans of FRA lots of fascinating numbers to analyze. 

  • You will also see operating and financial leverage, those esoteric concepts in Corporate Finance, kicking into action as high fixed operating costs, leverage and plummeting revenues destroy bottom lines and even companies. 

  • In Equities, industry & company analysis will be even more rewarding, as industries are transformed, valuations drop, and winners and losers emerge from this crisis. 

  • You may see a flurry of bond defaults and bankruptcies which will remind you of Fixed Income especially the credit analysis part. 

  • You can see how big investors, funds et al manage client money in these tough times, providing you a ringside view of the application of Portfolio Management and Risk Management.

I always see that relevance is a big motivating factor in CFA. If you can see the relevance of what you are studying, the “tough” and “dry” curriculum will be much more interesting and easier.

You will most likely never see this again. So watch and learn. 

Modelling

No, I am not asking that you walk the catwalk or appear in Vogue/GQ magazine.

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  • I AM strongly suggesting that you learn/brush up your financial modeling skills. 

  • If you have any ambitions to break into equity research or asset management or investment banking, you MUST be a whiz at FM.  Valuations, feasibilities etc. on Excel should be a key technical skill. 

  • So, learn advanced Excel. There are quite a few good courses online. 

  • Then apply Excel in your own time. For example, run valuations on well-known companies and publish these valuations on LinkedIn etc.

Late risers

  • Lot of the above was meant for anyone who has already registered for the June 2020 exams. 

  • If you signed up and still haven’t started or started but nowhere near 50% then cheer up! Because now you have more than enough time.

  • But what if you haven’t registered yet for the June 2020 exam (Level I or II or III) and now want to sign up?  No, you can’t; the CFAI has been clear and firm about that.

Summary

  • The suggested timeline; delay study finish to 30 June. Work out questions from 15 July to 30 September. Start your revision on 17 October (a Saturday!). 

  • If you write Level I or II in December 2020- which you should- your next attempt can be in June 2021. This is excellent for Motivation, Memory and Momentum.

May the Force be with you.

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