🍋 Flat Bonuses for Traders

The latest bonus figures for Wall Street sales and traders just dropped, plus the cities that Gen-Z is moving to the fastest.

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Short Squeez
December 27, 2023

Together With

“A man who pays his bills on time is soon forgotten.” — Oscar Wilde

Good Morning! Wall Street learned that, this year, nothing beat owning the S&P 500 (up 25% YTD). Some job postings are secretly remote, Reddit is likely IPO'ing in 2024 at a $15 billion valuation. Plus Warren Buffett’s best advice to improve your mind and body, 8 must-read books for self-improvement, and the 10 most popular U.S. cities where Gen-Z is moving.

SQUEEZ OF THE DAY

Flat Bonuses for Traders

It’s the time of year when Wall Street bonus expectations turn from projections to the actual cold, hard numbers and reality. And Wall Street traders are the first to find that their comp is expected to be flat this year.

Traders had an up and down year. They survived drama in both private dealmaking and public markets, bank collapses, and even job cuts. But it’s looking like, at least for those in sales & trading, their bonus season is going to be pretty boring.

At JPMorgan, the bonus pool for traders is expected to be flat year-over-year. And Goldman and Bank of America traders can expect a few extra percentage points added to their bonuses. The former aims for modest raises to boost morale, while the latter may increase bonuses for better-performing groups.

Fixed-income traders are likely to see an average bonus boost of about 3%, whereas equity traders are bracing for a 3% cut.

Traders are wishing it was the glory days of 2020 again - when the pandemic triggered a trading and dealmaking boom. The competition for junior talent unleashed a talent war, and massive bonuses (often at least one’s base salary, if not double) followed.

Takeaway: Wall Street bonuses usually swing wildly, but this year, things are pretty tame. With all the industry cuts, even a small, steady bonus is something to value. And despite overall subdued atmosphere, top performers are still expected to receive bonuses reflective of their individual contributions, maintaining a glimmer of the Wall Street reward culture amidst a year of adjustments and recalibrations.

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End 2023 on a High

Vantage Point brings you one trading hack that could supercharge your goals and help you finish 2023 on a high note.

Here's a sneak peek of what you can expect:

  • Analyzing Market Trends: Gain insights into identifying promising trends early on.

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  • Tactical Strategies: Implement techniques to mitigate the effects of time decay.

HEADLINES

Top Reads

  • The 10 most popular U.S. cities where Gen-Z is moving (CNBC)

  • The 2024 economy could be shockingly normal (Axios)

  • MicroStrategy’s Bitcoin bet produces 300% gain for investors in 2023 (CNBC)

  • Bezos taps Amazon vet to speed up space company Blue Origin (Reuters)

  • Some jobs are secretly remote (HBR)

  • Why 2024 could be the year of media dealmaking (YF)

  • EV startups are running out of cash (BB)

  • 2024 is shaping up to be the year of the streaming bundle (CNBC)

  • Wall Street diversification trades get crushed as S&P 500 soars (BB)

  • Hedge funds seek double-digit returns in 2024 after a year of outflows (Reuters)

CAPITAL PULSE

Markets Rundown

The S&P closed near its record as stocks enter the final month of 2023.

Movers & Shakers

  • (+) RayzeBio ($RYZB) +101% because of a $4.1 billion acquisition by Bristol Myers.

  • (+) Gracell Biotechnologies ($GRCL) +60% after an acquisition by AstraZeneca.

  • (+) Intel ($INTC) +5% after a $3.2 billion grant from the Israeli government.

Private Dealmaking

  • Bristol Myers bought Rayzebio, a cancer drug company, for around $4.1 billion

  • AstraZeneca bought Gracell Biotechnologies for $1.2 billion

  • Ola Electric, an Indian e-scooter maker, raised $662 million

  • Sudo Biosciences, a TYK2 inhibitors developer, raised $116 million

  • NewLeaf Symbiotics, a methylotrophs developer, raised $45 million

  • Adionics, a lithium extraction company, raised $27 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

BOOK OF THE DAY

Exponential Organizations 2.0

In a world of accelerating technologies, three visionary pioneers—Salim Ismail, Peter H. Diamandis, MD, and Michael S. Malone—bring you a playbook to ride on top of the exponential curve.

This is a compelling sequel to Exponential Organizations, which quickly became one of the most successful business books globally, being used by leaders, organizations, and even countries to create transformation across nearly every industry and geography. 

Exponential Organizations 2.0 outlines the 11 ExO Attributes—the shared DNA of the most dynamic and forward-thinking organizations in the world today—providing a comprehensive guide and the critical tools required to transform your business into an exponential powerhouse.

Unlock the keys to 10x Growth and Impact with practical advice, case studies, and powerful tools designed to help you dissect your business, identify potential growth areas, and maximize impact.

Don't just imagine the future; create it. With Exponential Organizations 2.0 as your guide, transform your business into a force for unparalleled growth and global impact.

“The future belongs to those who can innovate at warp speed.”

DAILY VISUAL

Misery Index Says the Worst is Over

Source: Axios

The misery index, which combines the unemployment and inflation rates, concludes 2023 at 6.8%. This marks its lowest level since March 2020 when the pandemic began, and well below the 8.3% average for the century to date.

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Investors: Follow This $2.4T Breadcrumb Trail

While most investors toe the line with standard markets, the savvy among us have zeroed in on what some experts call “the backbone of the American economy.”

The global supply chain disruption of 2020 revealed a clear need for domestic manufacturing solutions, fueling massive demand in the US. 

While inflation riddled other sectors, IRE remained resilient, delivering instant cash flows, inflation protection, and asset appreciation for investors. 

But here’s the kicker: Not all IRE investments are the same. MAG Capital Partners have over 50 year’s experience of accessing off-market investments that deliver consistent yields (while minimizing risk).

DAILY ACUMEN

Hard Truths

Welcome to a reality check by Mark Manson. Brace yourself for three hard truths that might make you squirm:

Truth #1: You're Wrong About (Almost) Everything

Your current beliefs? Future you might cringe at them. Before being too certain, ask if it's something you'll regret in a decade. If so, maybe keep it to yourself.

Truth #2: Most People Aren't Evil, Just Stupid (Including You)

Moral judgments fly around, especially on social media. Manson's wisdom? Hanlon’s Razor: Don't attribute to malice what can be explained by stupidity. Accept that much of what you encounter is a degree of foolishness.

Truth #3: Care About People (And Show It)

Harvard's study revealed the key to happiness: quality relationships. The secret? Care about others and demonstrate it. Cultivate trust, intimacy, vulnerability, and mutual respect. Remember, we're all a bit foolish.

In Mark Manson's words, it's about embracing uncomfortable truths.

Source: Mark Manson

ENLIGHTENMENT

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