Sep 16, 2016
Jared Dillian is editor of The Daily Dirtnap: A daily market
newsletter for investment professionals. Jared is also author of
“All the Evil of This World” and “Street Freak”. He gives a behind
the scenes look at the good, the bad, and the ugly of Wall
Street.
Jared’s interest with Wall Street didn’t start with the idea of
making money. It was more academic. He wanted to learn why so many
traders were trying to beat the market when all the Wall Street
books he was reading said that beating the market was a huge waste
of time. He started working at Lehman Brothers and quickly learned
the culture within an investment bank was completely different.
Everyone working at investment banks were in the business of making
money, they are all traders. Jared speaks about the structure of
Lehman Brothers and how they changed under the management of Dick
Fuld. He then dovetails into detailing the dot-com bubble and the
housing bubble, and explains why some firms were able to fail and
others were able to survive.
Next, Michael and Jared talk about the “sex drugs and rock and
roll” aspect of Wall Street. Jared looks back on what he saw when
he worked in the pits of Wall Street and says that, “that culture”
doesn’t really exist anymore since the 2008 crash. They finish up
talking about the pros of being an entrepreneur rather than working
for a big investment bank on Wall Street.
In this episode of Trend Following Radio:
- Behavioral finance
- Market psychology
- Housing bubble
- Dot com bubble
- Lehman Brothers
- Starting your own hedge fund