“Flip flop is to me perfection”
We received some intriguing feedback regarding our critique of DJ D-Sol. Yes, we can be harsh at times, but we only criticize those who are well-established grown ups in a position to respond. All fun and games. The analytical breakdown we produced was merely for the purposes of clarity and entertainment. Otherwise, it should be basic common sense for the leaders of any organization.
It's All Gone DJ D-Sol
The movie “It's All Gone Pete Tong” (released in 2004) tells the story of a famous Ibiza DJ in the 1990s who gradually loses his hearing due to his hazardous work conditions. It's an excellent film, and without giving away too much for those who haven't seen it, it explores the DJ's journey as his hearing deteriorates, eventually forcing him into early retirement. The story isn't entirely bleak; he manages to adapt to his loss of hearing by enhancing his other senses.
The Wikipedia entry for the movie starts as follows:
“Frankie Wilde is a British music producer and DJ based in Ibiza. After years of playing in nightclubs, he loses his hearing, first noticed when he hears a high-pitched whine instead of an Arsenal football match on TV.”
Back in 2004, Arsene Wenger was managing Arsenal, implying he was already metaphorically blind, on the verge of going deaf, but full of heart. Otherwise, life as a world-renowned DJ is pretty amazing if one has the talent and can manage the consequences.
In relation to David Solomon, life as the boss is much easier and more harmonious when you have a team you trust to do their job without the need for micromanagement. Regularly undermining or criticizing subordinates rarely leads to positive outcomes. The focus shifts to managing upwards rather than downwards, which is counterproductive.
Generally, most people do not produce their best work in a high-pressure, intense work environment which is considered the norm on Wall Street banks.
Why performing a DJ D-Sol stunt Is best avoided
Here's why, in the new digital age, the CEO of a major company should avoid doing what Solomon did:
Most market professionals can distinguish between Goldman Sachs Research and the personal views of the CEO. They also don't rely on a Google search to inform their views on the US economy. However, for many who don't look beyond the first page of Google search results, the online narrative is now dominated by DJ D-Sol. That will take weeks or months to scrub from the internet search results.
Bad managers and leaders on Wall Street
The combination of being a great manager and top producer is rare on Wall Street. This rarity is partly due to the nature of the job, where personal production numbers are the main appraisal criteria. Additionally, the industry tends to attract a certain type of personality, which can be counterproductive collectively. Unlike Nvidia, where the business is on a rapid growth trajectory, making everyone happier and more likely to be promoted, the banking industry has been in a gradual secular decline since the Global Financial Crisis. This headwind, coupled with a culture of “move up or out,” breeds discontent among the rank and file when expectations are not met.
Having recently presented to a group of first-year undergraduate students, I was pleasantly surprised by how many are eager to pursue careers in banking and financial services. Compared to the tech industry, where most growth has been concentrated, major Wall Street banks still attract significant interest from new talent.
Goldman Sachs (GS) vs. US Bank Corp spread trade update
Our long GS/UBS stock spread trade (USB in blue), initiated in April of last year, is fast going nowhere:
At this rate, we'll soon have to talk about risk-adjusted returns to justify a bad trade.
Here's the latest frontline map in the Russia-Ukraine war:
Russian troops have picked up the pace of the assault in the past 48 hours.
