🍋 Gen Z's Credit Crunch

Together With

Good Morning! Good news for American workers as paychecks are finally outpacing inflation. A new study revealed that New York City is the world’s wealthiest city, but the Bay Area is home to the most billionaires. Reddit is not happy with AI companies using its data and plans to start charging companies for access to its data that is used to train AI models.

The financial sector is facing challenges with the four biggest banks collectively writing off $3.4B in bad consumer loans at the start of the year. Consulting firms Bain and McKinsey are delaying their start dates for MBA grads until at least 2024 due to a drying up of deal flow. Bain is reportedly offering new hires $20,000 to become yoga instructors or go on safari for a year.

Netflix has postponed its controversial password-sharing crackdown, while simultaneously bidding farewell to its DVD delivery business after 25 years.

LMNT is a game-changing electrolyte drink mix that is used by professional athletes. LMNT is offering Short Squeez readers a free sample pack with any purchase.

If you are interested in getting in front of a smart, young audience of business leaders, bankers, investment professionals, policy influencers of over 500,000 people, then fill out this form, we’ll be in touch.

1. Story of the Day: Gen Z’s Credit Crunch

As the world continues to navigate through the uncertainties of the pandemic, many young adults find themselves grappling with financial stress. Instead of confronting the problem, however, a growing number of millennials are choosing to avoid it altogether. This worrying trend has resulted in a significant rise in debt levels, late fees, and damaged credit scores.

According to a recent report by Credit Karma, the average credit card debt for millennials has surged by 29% to $5,800 in March from a year earlier. This is coupled with a 40% increase in credit-card debt for Gen Z, which now stands at $2,800.

Psychologists and economists say financial avoidance is a common behavior among younger people from any generation. However, the pandemic's economic whiplash followed by high inflation has made such behavior more prevalent.

The impact of financial avoidance can complicate later milestones, such as purchasing a home or retiring. Millennials in their 30s have experienced the steepest increase in debt of any age group since the pandemic. And almost one-third of Gen-Zers say they experience ‘disassociation’ from their finances.

Takeaway: While it's important to have a healthy mindset when it comes to money, relying on financial avoidance as a coping mechanism could land you in serious debt. Ignoring the problem won't make it go away - in fact, it could make it much worse.

2. Markets Rundown

_{For access to Wall Street insider interviews, industry deep-dives, premium research/resources and weekly Knowledge Drop newsletter, check out our Insiders membership.}

Stocks closed mixed as more earnings roll through.

Movers & Shakers

• (+) Blackstone ($BX) +5% after news the company could join the S&P 500.

• (+) Nvidia ($NVDA) +2% after HSBC gave them a double upgrade.

• (–) Goldman Sachs ($GS) -2% after a revenue miss after consumer banking flop.

Private Dealmaking

• Miovision, a traffic management software provider, raised $194 million

• Ynsect, an insect protein farm startup, raised $176 million

• Razor Group, an Amazon merchant acquisition platform, raised $88 million

• Recuro Health, a digital medical home care startup, raised $47 million

• Sei, a blockchain trading startup, raised $30 million

• Oxos Medical, an X-ray tech startup, raised $23 million

A Message from LMNT: Feel Human Again

Looking for a way to work hard and play hard without the dreaded morning-after hangover? Say hello to LMNT, the perfect drink to help you feel human again after a long night out or an intense workout.

This delicious electrolyte drink mix has everything you need and nothing you don't - no sugar, no coloring, no artificial ingredients, no gluten, no fillers, and no BS. It's the go-to beverage for everyone from professional athletes to busy moms and exercise enthusiasts.

And now, for a limited time, LMNT is offering Short Squeez readers a free sample pack with any purchase. That's 8 single serving packets absolutely free with every order, so you can try all 8 flavors or share with a friend in need.

Don't let a nasty hangover ruin your day - stock up on LMNT and feel your best every morning. But act fast - this deal is not available on their regular website. Get yours now!

3. Top Reads

• Worthless degrees are creating an unemployable generation in India (YF)

• How Bud Light became a microcosm of America in 2023 (Axios)

• Are investors behaving irrationally? (YF)

• Goldman misses out on lending bonzana (WSJ)

• Apple opens first India flagship store (Fox)

• Few banks are hedging interest-rate risk (WSJ)

• BlackRock sees big investors boosting private equity, PE stakes (BB)

• The rebirth of software as a service (HBR)

• Goldman is watching for cannibalization from Apple’s new savings account (CNBC)

• The companies that give everyone the day off when life gets stressful (WSJ)

4. Shortform Book of the Day: The Dip

In this iconic bestseller, popular business blogger and bestselling author Seth Godin proves that winners are really just the best quitters. Godin shows that winners quit fast, quit often, and quit without guilt—until they commit to beating the right Dip.

Every new project (or job, or hobby, or company) starts out fun…then gets really hard, and not much fun at all. You might be in a Dip—a temporary setback that will get better if you keep pushing. But maybe it’s really a Cul-de-Sac—a total dead end. What really sets superstars apart is the ability to tell the two apart.

Winners seek out the Dip. They realize that the bigger the barrier, the bigger the reward for getting past it. If you can beat the Dip to be the best, you’ll earn profits, glory, and long-term security.

Whether you’re an intern or a CEO, this fun little book will help you figure out if you’re in a Dip that’s worthy of your time, effort, and talents. The old saying is wrong—winners do quit, and quitters do win.

“A woodpecker can tap twenty times on a thousand trees and get nowhere, but stay busy. Or he can tap twenty-thousand times on one tree and get dinner.”

Read More Books in Finance, Economics, and More with Shortform

Short Squeez readers - start your FREE trial and get 3 Months FREE when you sign up for the annual subscription!

5. Short Squeez Picks

• How to create a time map to improve productivity

• How to manipulate graphs to support your narrative

• What makes you happy

• How to know when to end your work day

• How saying “me” or “we” changes your psychological response

6. Daily Visual: Operating Craft Breweries in the US

_{Source: Axios}

7. Daily Acumen

Finding the equilibrium between what we expect and what we experience can be the key to unlocking a life of contentment and joy.

In our pursuit of happiness and success, we often focus on improving our circumstances. However, the power of expectations should not be underestimated. It's important to strike a balance between setting goals and managing our expectations to optimize our happiness quotient.

When we set high expectations, we may experience disappointment if reality doesn't live up to them. On the other hand, keeping expectations low allows us to appreciate our achievements and derive joy from even the simplest of pleasures. By doing so, we create a buffer that helps us weather life's inevitable challenges and setbacks.

Here are some tips to help you find that balance:

Be realistic: Set achievable goals and expectations that are in line with your abilities, resources, and time constraints. Remember that life is full of variables, and it's crucial to be adaptable and resilient.

Embrace gratitude: Cultivate an attitude of gratitude by acknowledging and appreciating the good things in your life. This practice can help shift your focus from what you don't have to what you do have, resulting in increased contentment.

Avoid comparison: Comparing ourselves to others can lead to unrealistic expectations and unnecessary stress. Focus on your own journey, progress, and growth.

Be kind to yourself: Practice self-compassion and forgive yourself for not meeting certain expectations. Remember that no one is perfect, and we all face setbacks and challenges. The key is to learn from these experiences and continue moving forward.

Celebrate small victories: Recognize and appreciate even the smallest achievements, as they contribute to your overall sense of happiness and well-being.

8. Memes of the Day

 Advertise With Us / Merch Store / Private Equity Course

Want more Short Squeez?

Become an Insider. You'll get access to:

1. Industry deep-dives & compelling investment ideas

2. Wall Street Insider interviews breaking down their investment portfolio, strategy & investment picks

3. Knowledge Drop - an exclusive alpha-generating newsletter covering the best weekly research & content (podcasts, articles, blogs)

4. Vault – a collection of investing & recruiting guides, modeling courses, salary / comp data, institutional research (40+ resources added / month)

See you on the Inside.

*****

Looking to start your own newsletter? Beehiiv is Warren Buffett of creator platforms.

*****