Good Morning! US stocks attracted a record $119.2 billion of inflows last week as investors piled into tech. The memory chip crisis has hit such extremes that "even Apple can't be safe." And Google is using Nvidia's playbook to build a rival AI chip business.

NetJets suffered its first fatal crash, killing influential Texas VC founder Joshua Baer of Capital Factory. And Vegas, once America's bargain vacation, is now a luxury destination.

Plus: How Peter Thiel's private Dialog Club secretly ranks its members, and why the US is minting more millionaires than ever.

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SQUEEZ OF THE DAY

Wall Street's Hiring Dilemma

Wall Street has a junior banker problem. AI can model, but it can’t make the next rainmaker.

AI models now do a lot of what analysts used to spend their lives doing: draft pitchbooks, build first-pass models, summarize filings, review legal documents, and generate regulatory materials. JPMorgan and Citi bankers are already using Felix, an AI agent from Rogo, which reportedly produced a first draft of a 24-page take-private presentation in 25 minutes. That used to take days and several analysts questioning their life choices.

The obvious move would be to hire fewer juniors. But banks are hesitating, and the reason cuts to the heart of how Wall Street actually works: investment banking is an apprenticeship business. The analyst who grinds through models and decks at 2 a.m. is supposed to become the associate, then the VP, then the MD who can walk into a boardroom and win the client.

The grunt work was never just grunt work. It was the training mechanism and a rite of passage; the only way a 23-year-old eventually learns enough about a sector, a process, and a client's psychology to one day source the deal instead of just staffing it. If AI eats the bottom of the pyramid, the pyramid stops producing the people at the top. That is the actual problem, and it has nothing to do with cost.

That is why bank executives are talking about retraining more than mass cuts. Wells Fargo CEO Charlie Scharf said the bank is actively thinking about how to get ahead of the shift. Jamie Dimon has acknowledged AI has already displaced some JPMorgan employees but says the bank has redeployed them into other roles. 

The message from the top is consistent: AI will eliminate tasks and some jobs, but banks still need humans who can manage relationships, raise capital, advise CEOs, and make judgment calls when a deal is falling apart at 11 p.m. The technology can replace the work, but it cannot yet replace the person the work was supposed to create.

Clients are not waiting for banks to figure this out. If AI lets bankers produce models and slides faster, clients expect faster turnaround and sharper answers, and some are already using AI themselves to ask harder questions and compare pitches across banks in real time.

That puts pressure on fees, especially as parts of investment banking start to look less like bespoke advisory work and more like software-enabled output. The faster the deliverables get commoditized, the harder it becomes to justify what banks have always charged for.

Takeaway: AI isn't just a productivity tool for Wall Street. It's a challenge to how Wall Street manufactures talent. It can build the model and draft the deck in 25 minutes. It can't build trust with a CEO, read a room mid-negotiation, or turn a 23-year-old grinding through DCFs into a rainmaker a decade later. That happened because of the grunt work, not despite it.

Banks have to find productivity gains without deleting the only training ground that ever built a banker. Get it wrong, and Wall Street saves a fortune on analysts today and finds out in fifteen years that nobody knows how to run a deal.

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HEADLINES

Top Reads

• US stocks draw record weekly inflows as investors pile into tech (BB)

• Memory crisis hits such extremes that 'even Apple can't be safe' (CNBC)

• Google is using Nvidia's playbook to build a rival AI chip business (WSJ)

• NetJets' first fatal crash kills influential Texas VC founder (CNBC)

• Vegas was once America's bargain vacation. Now it's a luxury destination. (WSJ)

• How Peter Thiel's private Dialog Club secretly ranks its members (Wired)

• More than 1 billion barrels of oil have gone missing (Yahoo Finance)

• Local burger chains are winning the fast-food wars (WSJ)

• Brent oil dips below $80 as postponed US-Iran talks temper optimism over ceasefire progress (CNBC)

• Homeowners tapped $47 billion in equity in the first quarter. What to consider before you borrow (CNBC)

• Elon Musk says dollars will be replaced by 'mass & energy,' reaffirms lunar factories, mass drivers for AI goals (Yahoo Finance)

• Crazy rich returns lure cabbies and even kids to red-hot Asian markets (WSJ)

• Legendary NYC restaurateur launching private club — where the food will be a main attraction (NY Post)

• Why the 2 biggest billionaires in crypto think bitcoin has bottomed (Yahoo Finance)

CAPITAL PULSE

Markets Rundown

Markets were closed for Juneteenth.

Prediction Markets

• Iran says it has closed the strait again after Israel attacks in Lebanon.

• Trade on real-world events with Kalshi. Use code OWS to get a $10 bonus when you trade $10.

Private Dealmaking

• Innovafeed, a French insect ag firm, raised around $59 million

• Pace, an insurance ops automation startup, raised $46 million

• H1, a doctor connections platform, raised $40 million

• Layup Parts, a maker of composite parts, raised $42 million

• Canals, a provider of wholesale distribution tech solutions, raised $35 million

• Catena Labs, an AI-native bank, raised $30 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

BOOK OF THE DAY

Trust

Description:
A brilliantly constructed novel from Hernan Diaz that examines wealth, power, truth, and the stories people tell to shape their legacy. Set against the backdrop of New York's financial elite in the early twentieth century, the novel unfolds through multiple narratives that challenge one another, forcing readers to question what is real and who controls the truth. Both a gripping literary mystery and a meditation on money and influence, Trust explores how fortunes are built, how reputations are manufactured, and how history is often written by those with the most power.

Book Length: 416 pages
Release Date: May 3, 2022

Ideal For:
Readers interested in finance, power, history, and literary fiction that explores the intersection of wealth, influence, and narrative control.

Money creates power but the story behind the money often creates something even stronger: belief.

DAILY VISUAL

Monopoly Tops US League Tables

PRESENTED BY MOSAIC

Mosaic Introduces Major Upgrades to FactSet Integration and Take-Private Analysis

Mosaic continues to enhance its FactSet integration and take-private analysis capabilities, enabling users to automatically pull live share prices, broker targets, market data, and VWAP metrics directly into AVP outputs.

Teams can now incorporate premium-to-L3M and premium-to-L6M VWAP analyses with greater accuracy, while flexible line-item controls allow each VWAP metric to be toggled on or off to customize outputs.

These updates streamline valuation workflows, improve data accessibility, and provide deal teams with deeper insights and greater efficiency across the Mosaic platform.

Demo the platform today.

DAILY ACUMEN

Inside View

When people predict how their own venture, marriage, or project will turn out, they tell a detailed story about why theirs is different. What they almost never do is look up the base rate, the simple percentage of how everyone else in the same situation actually fared.

This is the difference between the inside view and the outside view. The inside view feels richer and more accurate because it is full of specifics only you know. It is also wildly optimistic, because every founder, every couple, every dreamer has a compelling story. Most of them, still land near the average.

The uncomfortable discipline is to start with the base rate and only then adjust for what makes you genuinely different. Your specifics matter less than you think. The statistics that bored you, were quietly describing you the whole time.

ENLIGHTENMENT

Short Squeez Picks

• Why the U.S. is minting more millionaires than ever 

• 3 changes for a more fulfilling life

• 2 habits that make your life exponentially happier

• How to handle a manipulative creep at the office

• How to break bad habits 

• The Coverd Card has officially launched*

MEME-A-PALOOZA

Memes of the Day

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