The screens are red again.

– What do you recommend now, the PM asks the analyst.

The analyst swallows.

– I’m sticking with my buys, the analyst says. Good companies.

The PM narrows his eyes at the screens.

– They’re down double digits, the PM says.

The analyst swallows again.

– I like them, the analyst says. You liked them too. 

The PM narrows his eyes at the analyst.

– I have to explain to our clients why we’re 300 basis points behind the benchmark. They won’t like that. I won’t like that.

The analyst frowns and nods his head.

– No. But if you liked the stocks then, you’ve got to love them now. Right?

The PM pushes back his chair.

– Your reasoned analysis is to buy the dip?

The analyst frowns and shakes his head.

– Good companies are trading cheaper. 

The PM shakes his head.

– That’s it? That’s what we pay you for?

The analyst stands up.

– I’ll go run the models again.

The PM shakes his head again.

– Stop, he says to the analyst. 

The PM picks up the phone.

– Cut my top five, he says into the phone. By a third.

The PM turns back to the screens.

– No need to run your models, he says to the analyst. Just go.



  • What might the PM be trying to achieve by treating the analyst this way? 
  • What might be the unintended consequences for the PM?
  • What advice would you give to the PM? And to the analyst?