Management Consulting, Private Equity/VC & Investment Banking are the top three sought-after jobs amidst college students.

This is how their future is changing:

(1) Post COVID, the need for on-site work has dramatically gone down. This means that to be competitive, top-tier firms would have to bring down their average billing rates.

This transition to mass-market models in consulting is imminent. This means that more number of people would be recruited, but the average salaries should come down.

(2) Decentralized Finance (DeFi) is proving to be an arch-nemesis to traditional Investment Banking.

Therefore, you have people like Jamie Dimon (CEO of JP Morgan) feeling so conflicted about Cryptos and Blockchain. On the one hand he understands that blockchain is disrupting his business; on the other he sees no option, but to embrace this change (else, his bank would become a laggard in the new DeFi systems).

The dominance of these banks would definitely be challenged. Large banks can't flex the money power and crush competitions. Blockchain gives a level playing field even for new entrants.

(3) VC/PE -- oh boi! talk about the availability of inexpensive capital.

With close to 0% real interest rates and excess money printing, organised groups (eg. VC/PE) are getting access to capital for literally free.

They get to invest in the most revolutionary idea and assets that are generating better returns than any other asset class.

This sector is going to the moon!

Overall: we keep on talking about the rich-poor divide. But, we should rather term it is risk-safe divide.

With 0 cost to capital & infinite appetite for risk, if you sprinkle a bit of knowledge, the VC space has decades of bull run ahead of it.

The average investor (especially folks who invest in FDs) on the other hand, will keep on wondering, why they are getting poorer by the day.

Credits: Akshat Shrivastava