Episode 147

full
Published on:

6th Jun 2023

A Record Plunge, Goldman goes from Bad to Worse and Landlord Problems

Goldman Sachs is preparing for its third round of layoffs since September as Wall Street firms adjust to a slump in deals activity. The company is expected to trim fewer than 250 jobs in the coming weeks. Goldman Sachs, led by CEO David Solomon, was among the first major Wall Street firms to trim jobs in September, cutting a few hundred positions. It then slashed more jobs in January, releasing about 3,200 employees. Morgan Stanley announced about 3,000 job cuts this month, and JPMorgan Chase cut about 500 jobs. However, Goldman is more tied to the ups and downs of Wall Street than its rivals. Its combined 16% drop in first-quarter trading and advisory revenue contributed to a disappointing start to the year.

In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.


They discuss a report from Refinitiv's FedWatch, indicating that U.S. rate futures on Wednesday priced in a pause in interest rate hikes by the Federal Reserve at next month's monetary policy meeting, a massive turnaround from indications of a 25 basis-point increase earlier in the session.


Chris and Saied look at a report from payroll processing firm ADP, showing that the U.S. labor market posted another month of surprising strength in May as companies added jobs at a pace well above expectations.


They also offer some thoughts on the tumble the stock market took on Wednesday, as the Dow Jones Industrial Average fell 0.4%, or 150 points, by 3:15 p.m. ET, while the S&P 500 and the tech-heavy Nasdaq slid 0.5% apiece.


Join Chris and Saied for this fascinating and informative conversation.


Enjoy!


What You’ll Learn in this Show:

  • The concept of market capitalization.
  • Why inversion typically precedes a recessionary economy.
  • Why the data is showing that employment is headed in the wrong direction.
  • And so much more...


Resources:

"Dow falls 130 points after FDIC reveals record plunge in bank deposits" (Forbes via Instagram) 

"US rate futures expect Fed pause in June in sharp turnaround from earlier" (Reuters)

"Goldman Sachs is cutting jobs again amid Wall Street deals slump" (CNBC)

"Job openings show surprise increase in April" (Yahoo! Finance)

"Private payrolls rose by 278,000 in May, well ahead of expectations, ADP says" (CNBC)

"Pending home sales unchanged in April, down 20% year-over-year" (CNBC)

"Market Capitalization: What It Is and Why It Matters" (NerdWallet)

"State Farm Halts Home-Insurance Sales in California" (The Wall Street Journal)

"Apple Customers Say It’s Hard to Get Money Out of Goldman Sachs Savings Accounts" (The Wall Street Journal)

"Downtown LA's office distress shows the pain coming for cities" (Bloomberg)



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About the Podcast

The Higher Standard
This isn’t a different standard, it’s the higher standard.
Welcome to the Higher Standard Podcast, where we give you ultra-premium, unfiltered truth when it comes to building your wealth and curating the lifestyle of your dreams. Your host; Chris Naghibi is here to help you distill the immense amount of information and disinformation out there on the interwebs and give you the opportunity to choose a higher standard for yourself. Sit back, relax your mind and get ready for a different kind of podcast where we elevate your baseline with crispy high-resolution audio. This isn't a different standard. It's the higher standard.

Follow Chris here as he posts daily: https://www.instagram.com/chrisnaghibi

About your host

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Christopher Naghibi

Christopher M. Naghibi is the Founder and Chief Executive Officer of Black Crown Inc. and Black Crown Law APC, a disruptive collective of attorneys, property managers, real estate agents and contractors who handle home sales and purchases, commercial and multifamily real estate brokerage, primarily for high net-worth and celebrity clients.

His team has over 20 years of experience, 1000+ satisfied clients, $10 million in recovered costs for clients, and in excess of $20 billion dollars in closed transactions.

As a licensed attorney, real estate broker, general contractor, and now Top 100 podcast host, Chris aims to provide free financial education that allows people to take control and democratize fear in the financial world.