Good Morning! New York and California have each lost $1 trillion as financial firms like AllianceBernstein, Elliott Management, and Charles Schwab move down south for greener pastures. And everyone's feeling a little sluggish during the dog days of summer. But it turns out this summer's extreme heat has cost the U.S. economy $100 billion in lost productivity this year - and that number could triple in a few years.

The 10-year Treasury yield hit its highest level since 2007 as investors brace for the Fed’s symposium. Mortgage rates are as high as they’ve been since 2007. And Americans’ travel plans have come roaring back this summer. Apparently, by 2023, travel is set to become a $15.5 trillion industry - accounting for almost 12% of the global economy.

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.

_{SQUEEZ OF THE DAY}

Goldman’s Flip Flop

Goldman really fumbled its bet on consumer banking. First it was the GreenSky nightmare, then the awkward Apple Card breakup rumors. But yesterday, the bank announced it’s trying to shed the $29 billion wealth advisory business it bought just four years ago.

Goldman isn’t used to failing. The bank had a prestigious reputation as Wall Street’s smartest for decades. But, a few years ago, the firm thought it could make a profitable pivot by broadening its Main Street, consumer base.

But Goldman lost too much money from their consumer bet.

And it’s yet another pattern at Goldman - the firm keeps walking back and undoing some of its largest consumer bets. Goldman took over a $2 billion write-off on home improvement lender GreenSky and now wants to sell it, they’re rumored to be looking to end their Apple Card partnership… and now they’re exploring ‘strategic options’ (code for putting on the market) for its wealth advisory business.

Takeaway: Goldman just wants to sell a small part of their wealth management platform (they’re still focusing on their ultra-high-net-worth clients). But it just goes to show a current pattern at the bank - they’re unwinding some of the big deals they thought would grow their client base and bottom line. Is this the beginning of the end for DJ D-Sol?

_{CAPITAL PULSE}

Markets Rundown

Stocks rose to begin a key week for markets.

Movers & Shakers

• (+) Palo Alto Networks ($PANW) +15% after beating earnings expectations.

• (+) Nvidia ($NVDA) +8% after HSBC raised its price target.

• (–) Napco Security ($NSSC) -45% after an audit error overestimated the company’s financial statements.

Private Dealmaking

• Permian Resources bought Earthstone Energy for $4.5 billion

• Axiom Space, a space company, raised $350 million

• Viome, a microbiome startup, raised $86.5 million

• Moove, a fintech for mobility entrepreneurs, raised $76 million

• Enough, a mushroom-based protein products maker, raised $44 million

• ProjectDiscovery, a cybersecurity startup, raised $25 million

Get access to private deal flow here.

_{SPONSORED BY JURNY}

AI Investment Opportunity

The AI landscape is rapidly evolving, with giants like Google and OpenAI paving the way. Every industry is being transformed, and VCs have taken note, channeling billions into AI startups.

This golden era of AI isn't exclusive to the world of big VCs and IPOs.

Here’s a great startup giving Short Squeez readers a limited-time opportunity to invest in the future:

Jurny: At the forefront of AI-driven innovation, Jurny is revolutionizing the hotel and short-term rental sector by addressing inefficiencies worth over a staggering $1 trillion.

Their impact? Customers are already witnessing efficiency boosts of up to 80%. It’s no wonder Jurny has secured the trust of top-tier investors like Mucker Capital and Okapi Ventures.

Dive into the AI wave. Secure your stake in Jurny now.

_HEADLINES

Top Reads

• America’s manufacturing boom could add 250k jobs in two years (Axios)

• Morgan Stanley sees mood on US stocks souring (YF)

• San Francisco’s robotaxi experiment is getting out of hand (Vox)

• Sweetgreen hires former Chipotle execs, readies mid-America push (WSJ)

• Meta launching web version of Threads in race with X (Reuters)

• Why startups are investing millions to make drugs and semiconductors in space (CNBC)

• How Nvidia built a competitive moat around AI chips (NYT)

• Retailers embracing the Christmas creep (CNN)

• Wall Street all-stars including Weinstein, Ackman bid for hedge fund (WSJ)

_{BOOK OF THE DAY}

The Problem of Twelve

A “problem of twelve” arises when a small number of institutions acquire the means to exert outsized influence over the politics and economy of a nation.

The Big Four index funds of Vanguard, State Street, Fidelity, and BlackRock control more than twenty percent of the votes of S&P 500 companies—a concentration of power that’s unprecedented in America.

Then there’s the rise of private equity funds such as the Big Four of Apollo, Blackstone, Carlyle and KKR, which has amassed $2.7 trillion of assets, and are eroding the legitimacy and accountability of American capitalism, not by controlling public companies, but by taking them over entirely, and removing them from public discourse and public scrutiny.

This quiet accumulation in the last few decades represents a dramatic transformation in how the American economy operates—a sea change that few of us have noticed and all of us need to consider.

Harvard law professor John Coates forcefully calls our attention to what is sure to be one of the major political and economic issues of our time.

“The forces behind an economic and political crisis in the making.”

_{ENLIGHTENMENT}

Short Squeez Picks

• LinkedIn profiles do’s and don’ts

• A few stories on big decisions

• How to theme every work day for a more productive week

• Why you have to walk so far to your gate at the airport

• Why worrying is a complete waste of your time

_{DAILY VISUAL}

Total Assets in US Money Market Mutual Funds

_{DAILY ACUMEN}

Simpler Days

"Sometimes it seems that it might be better to go back to those simpler days, that one might get more out of a less complex life. But it cannot be done. One changes with prosperity.

We all think we should like to lead the simple life, and then we find that we have picked up a thousand little habits which we are quite unconscious of because they are a part of our very being-and these habits are not in the simple life.

There is no going back-except as a broken man."

_{JOB BOARD}

Featured Jobs

• Mizuho Americas - Senior Trader - New York, NY

• Citi - Trader - New York, NY

• JPMorgan Chase & Co - Associate - New York, NY

_{MEME-A-PALOOZA}

Memes of the Day