Insider Today: Wall Street's drug culture

Plus: Big Tech's new norm, and China's population concerns.

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January 19, 2024 • 5 min read with Dan DeFrancesco Happy Friday! The internet needs your help. No one understands what the hell is going on in this trailer for Jennifer Lopez’s upcoming movie. (We tried, but watch it for yourself here.) In today’s big story, we’re looking at the state of Wall Street’s drug culture. What's on deck Markets: The collectibles market has turned into an absolute nightmare. Tech: Get used to layoffs, Big Tech. They could be here to stay. Business: Here’s how AI could upend the commercial real-estate market. But first, does Wall Street have a drug problem?

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Vartika Sharma for BI The big story High on Wall Street Of the many stereotypes about Wall Street, one of the most prevalent is the industry’s rampant drug use. From Martin Scorsese’s “The Wolf of Wall Street” to HBO’s “Industry,” extreme drug use and working in finance are often portrayed as being hand-in-hand.  Wall Street has evolved, pitching itself as a place where you’re more likely to run into a CrossFitter than cocaine. But in reality, drugs are still prevalent on the Street, albeit some different ones. While cocaine usage among finance employees remains, everything from psychedelic drugs to nicotine pouches has become more commonplace. Business Insider’s finance team spoke to more than a dozen current and former finance professionals, along with several health professionals, to get a sense of Wall Street’s drug culture these days. JAMES ARTHUR GEKIERE Wall Streeters’ drug use is more than just people with money to burn looking for a good time.  While there’s an element of that, many insiders told BI they viewed their drug use as a performance enhancer.  Take Adderall, one of the most prevalent drugs in finance these days. The effects of the drug — keeping the user alert and focused — are viewed as beneficial when dealing in high-pressure, high-intensity roles like trading.  But there are risks, as one former investment banker described to BI “symptoms of psychosis” after an extended period of high-dose usage. For others, drugs come into play when entertaining clients after work. A microdose of “magic” mushrooms is a way to loosen up around clients without risking an alcohol-induced hangover the following morning, according to another banker. In an industry as cutthroat as Wall Street, where multiple colleagues could be fighting for a singular promotion, it’s no wonder so many view drug usage as a requisite of the job.  As one trader put it to BI: “One day, someone leaned over to me and said something to me like, ‘I forgot my Adderall,’ and I was like, ‘Oh, my God, is that how everyone is doing this?’” The truth, though, is you can find success without abusing substances on the Street. Take Marty Chavez, a former longtime partner at Goldman Sachs who has spoken openly about his decision to stop drinking more than 20 years ago.  Chavez, who is now a partner and vice chairman at Sixth Street, previously said he initially thought getting sober in such a booze-filled industry would be a “catastrophe” for his career. “And then I realized that's not real, none of that is real, that’s just the liquor talking. It’s just giving me reasons to take a drink,” Chavez said.    Read the full story

3 things in

Markets 🔔 Before the opening bell: US stock futures rise early Friday, with chipmakers including AMD and Nvidia leading premarket gains.  AP Photo/Ted Shaffrey 1. A collapse in collectibles. From luxury watches to fine wines, collectibles had a strong run in the wake of the pandemic. But 2023 was a tough year, as indexes tracking the non-traditional assets plummeted. These were the ones hit the hardest. 2. Jamie Dimon still isn’t a fan of bitcoin, but he’s done talking about it. The JPMorgan CEO took more shots at the cryptocurrency — calling it a “pet rock” — before announcing the end of his bitcoin bashing. Even those in the space don’t always have flattering things to say. A lawyer for crypto exchange Coinbase compared buying cryptocurrency to purchasing Beanie Babies. (And we all know how that turned out.) 3. Even the most optimistic people on Wall Street have cause for concern. Fundstrat’s Tom Lee, who has been incredibly bullish, predicts the market will drop as much as 7% after this month. Choppy economic data and uncertainty about when the Fed will cut rates are giving Lee pause.

3 things in

Tech Justin Sullivan/Getty Images 1. Apple’s highly anticipated Vision Pro launch is already souring. It’s the company’s largest launch in nearly a decade. But instead of focusing on it, Apple has been battling a storm of other issues. Plus, Netflix majorly snubbed the new device by reportedly not developing an app for it. 2. Meta workers brace for more cuts to technical program manager roles. The fears arose after the role was eliminated at Instagram. This comes amid smaller job cuts throughout the industry, following a brutal year of layoffs last year. But constant cuts could be the new normal for Big Tech. 3. These 25 startups will sponsor H-1B visas for immigrants looking for work. Tech startups often rely on the H-1B temporary work visa program to hire skilled foreign workers. Top firms including Stripe and Databricks sponsor this class of visas.

3 things in

Business Kevin Mazur/Getty Images for Prime Video 1. Amazon’s entertainment layoffs stir major questions for insiders about its Hollywood ambitions. The company is making a course correction after spending billions on talent and shows. Now, people close to the company are speculating about additional cuts, power shifts, and more. 2. How AI will shake up the commercial real estate industry. Selling commercial property has long hinged solely on human relationships. But AI assistants have the ability to identify and contact potential buyers on a much larger scale. 3. A top PwC leader anticipates record CEO turnover this year. He cited how they’ll be grappling with complex issues like tech development and geopolitical tensions. Plus, 2023 already reached new highs for CEO exits.

In other news Behind the divorce at Fishwife, the internet's favorite tinned fish brand. China’s population keeps falling — and that’s more bad news for the world’s 2nd-largest economy. Reddit, the hotbed of the meme stock craze, is reportedly aiming to IPO in March. Here's why a top VC says healthcare investors should make growth-stage bets right now — and where he's looking for those deals. Abigail Disney regrets that she once flew alone on her family's private Boeing 737 from California to New York. Wealth Assistants claims in a new lawsuit its accounts were frozen in the weeks before it shut down.

What's happening today A Japanese moon lander is expected to reach the lunar surface. It was launched four months ago on a rocket. Pre-orders open for the Apple Vision Pro. The mixed reality headset costs $3,499 and becomes available February 2. Earnings today: State Street, Schlumberger, and other companies.

Josephine Maida For your bookmarks Disney World VIP Tours “I’ve gone on 10 Disney World VIP tours that cost up to $900 an hour, and I swear they’re worth it.” They offer experiences not available to everyday guests, including exclusive swag.

The Insider Today team Dan DeFrancesco, deputy editor and anchor, in New York. Diamond Naga Siu, senior reporter, in San Diego. Hallam Bullock, editor, in London. Jordan Parker Erb, editor, in New York. Hayley Hudson, director, in Edinburgh. Lisa Ryan, executive editor, in New York. Get in touch insidertoday@insider.com To read unlimited articles, subscribe to Business Insider. Download the Insider app Email sent to: vitor@idiot.cloudns.cc Manage your email preferences | Unsubscribe | Terms of service | Privacy policy | Advertise with us © 2024 Insider Inc. 1 Liberty Plaza, New York, NY 10006