While not one known to peddle in gloom and doom, Daniel Pinto, CEO of JPMorgan’s corporate and investment bank, made a rather grim prediction for Wall Street while speaking at JPMorgan’s Investor Day Conference.
He shared that the firm’s revenues from investment-banking are expected to be down 25% in the first quarter.
Referring to capital markets revenues across Wall Street, Richard Ramsden from Goldman Sachs also said the first quarter could be “the weakest in recent history,” and projected capital-markets revenues will be down at least 15% year-on-year for the first quarter.
Ted Pick of Morgan Stanley shared these views when speaking at the Credit Suisse Financial Services Forum, but added what I believe to be an even more ominous insight regarding the rest of the year. It is traditionally believed that the first quarter is the most important period of the year for trading desks, as asset managers move into new positions. So as the fist quarter goes, so may the rest of the year…
What should you do?
- Remember your skills are your security.
- Flush the firm provided “cool-aid” out of your system, and think strategically about your career.
- Be mindful of changes at the firm.
- Find someone with experience who can help you navigate the times ahead (Yes, that should be me.)