finance firms more stable in recession than faang?
more stability at two sigma, jane street, citadel etc than faang in a recession?
If you have PnL exposure, one record year is all you need :)
All you need to earn money for market maker during high volatility time?
? Don't understand what you asked.. What I meant was if you get a cut of profits that is 7 digits, it's okay to lose your job the next year.
Minus Netflix, FANG have much stronger balance sheets and access to cheap capital than any of the HFT firms.
Remember the last recession coincided with the launch of the first ever iPhone. There's something to be said about that given the 10 year rally we've been in ever since! That being said though, it's pretty hard to ascertain where the trigger for the next recession comes from. That would dictate which sectors of the economy end up being more impacted!
Low interest rate environment is essentially free money to firms in the origination business. Rates for borrowers are dropping too but not as much as the cost of funds faced by firms making new loans
None of them are stable. Money gets wiped off from the markets. Everyone gets affected. Keep good connections with your manager/boss
How come faang is more stable?
Tech will be the first industry to get hit Big if recession happens.
Depends on the nature of recession. Market makers fare well during volatile times. Hedge funds will as well if they are...well hedged. FANG will take a cut as business pull back on ad spending and consumers shop less. Expect to see less hiring and headcount reduction by attrition in areas with mediocre or worse performance. The most dangerous to be is a pre-revenue startup followed by pre-profit startup. Anything that needs a stream of investor cash to survive. Profitable startups will probably stagnate, but at least most people will keep their jobs. Fat margins help.
What about place like Bloomberg? Stable during recession?
Bloomberg will cut the bottom 10% as most companies do but will otherwise be stable.
Market makers will thrive in a recession. They make money when volatility is very high. Some of the places you listed are market makers, so yes, their business will be much more stable than faang. What they pay may not be though, since the price of talent would likely be much cheaper.
This is false... market makers will make money if volitility is managabily high. When it sky rockets as in value drops drops and drops like in a recession, trade volume is generally lower and so market maker also loses
I agree that the lower volumes can hurt market makers but just look at the recession in 2008 - most financial firms collapsed, market makers had record years for the most part.