“Wall Street banks know that they do not need to be in Midtown Manhattan to do business, and employees like that“– Paul Ebeling
Lots of Wall Street executives, bankers and fund managers are abandoning New York for Florida, embracing the Sunshine State over Metro New York as the coronavirus chaos has eliminated many benefits of working from the global financial hub.
Since many finance industry employees began working from home in March, Florida’s warm weather, low taxes, affordable space and quick, easy flights back to New York, when necessary have elevated its status.
About 30 major financial firms are looking seriously in South Florida and planning shifting staff there
Companies including Goldman Sachs, Elliott Management, Citadel and Moelis & Co are among the latest to say they will open satellite offices there or allow their moneymakers to be based in Florida.
In the past, Wall Street executives dismissed the idea of locating in Florida because of concerns about culture schools and networking opportunities.
Much of that has been eliminated as remote working and learning have taken over New York, while restaurants, museums and other venues remain all but closed because of continuing draconian lockdowns imposed by the Governor and NYC’s communist mayor.
That stuff makes Florida’s Republican business-friendly practices more attractive and laid-back lifestyle and bankers and investment professionals say.
Florida is part of a broader trend, with big financial companies moving staff from expensive cities like New York and San Francisco to lower-cost hubs in the states.
For many New Yorkers, Florida seems closer culturally and physically than other states. It is in the same time zone and has more Big Apple expatriates than one might find in other cities.
Year-round open-air dining is a plus, along with the absence of state income tax. Houses and apartments generally cost less, and commercial rents are about 50% of the Manhattan price in places like Palm Beach County.
Florida Republican Governor Ron DeSantis has prioritized the state’s economy over strict coronavirus chaos.
In September, he declared Florida open for business, barring local governments from limiting capacity at restaurants even as many other states restricted indoor dining.
Florida has no mask mandate.
Wednesday, the benchmark US stock market indexes finished at record highs: DJIA +73.89 at 30409.50, NAS Comp +19.78 at 12870.01, S&P 500 +5.00 at 3732.04. The Russell 2000 pulled ahead with a 1.1% gainer, as investors are buying small-cap value stocks.
Volume: Trade came in light at: 691-M/shares exchanged
HeffX-LTN’s overall technical analysis for the major US stock market indexes is Very Bullish behind a Bullish Homing Pigeon Candlestick pattern.
- NAS Comp +43.4% YTD
- Russell 2000 +18.7% YTD
- S&P 500 +15.5% YTD
- DJIA +6.6% YTD
Looking Ahead: Investors will receive the weekly Initial and Continuing Claims report Thursday, the financial markets are closed Friday for New Year’s Day.
Have a healthy Happy New Year, Keep the Faith!