As I think back to the group madness that overtakes Wall Street in the runup to Bonus Day, a passing thought on timing came to me.
Since most of the heavy paychecks are going to be slanted toward common stock this year, and since the pay itself will still be figured on the basis of dollar amounts — e.g. a top salesman might get a $2 million bonus — the people who matter at the major Wall Street houses will temporarily want their stock prices to go down.
Of course, they will want them to go up after the number of shares is determined. We’re approaching the end of January, which is when a lot of firms used to have the day they shared The Number with the employees.
That may have changed as several houses shifted their year-end from November 30 to December 31, but it might be worth calling a friend at any Wall Street firm you’re thinking of investing in, and asking when they are going to hear “their numbers.” That day, or the end of that month, might be the right time to make the plunge.
Every little bit of advantage helps, and being aligned with the people that pull down the big bucks is not a bad place to be.