The days of blurred lines between investment banks, hedge funds and traditional banks are over.
And that means two things. First, the profits won’t be as juicy. And second, the top sales talent will consequently move to where the bonuses are the most lucrative.
Question is: Where is the “action” moving to?
One destination is the mergers and acquisitions world. And judging by the attention that Cadbury (NYSE: CBY) and Kraft Foods (NYSE: KFT) buyout discussions are getting, you can see why.
Just last week, we heard about Disney’s (NYSE: DIS) takeover of Marvel, and the merger news keeps rolling in.
Looking around the markets, there are few other opportunities for top talent to churn out fantastic bonuses and commission-generating transactions like there are in M&A.
Hedge funds are about to be regulated, investment banks are under government screws, the equities markets look to flatline for the next year. And that’s not even getting into the fundamentals of M&A.
Market capitalizations are way down, the haves (those with cash) and the have-nots are numerous, and the attractiveness of buying the competition grows.
Symbols mentioned in this article: CBY, KFT and DIS.
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