Is a market storm coming? Ask an escort
If you're wondering if it's safe to put some new money to work in the stock market, the first question you have to ask is: How much fear is already priced in?
I put that question to several hedge-fund managers, traders, sales traders, analysts and day traders I know.
The collective sentiment could be summed up in two words: cautiously optimistic.
This, personally, scares me. Most finance professionals seem to think there was some capitulation (a feeling of maximum pessimism where people can't take it anymore and panic sell) last week, which usually signals the end of the pain trade. But I'm not sure we saw enough of it.
So, I asked: What are you afraid of?
"It's all performance anxiety," one hedge-fund manager said. "We're not worried about another 2008."
That thought echoed through each and every call I made within the industry.
So, I decided to check in with some of my secondary sources – the people whose businesses thrive on Wall Street money – to see if they were picking up on any fear on Wall Street.
The escort indicator
My first stop was to check back in on the escort indicator. Back in May, the escorts I spoke to said that business was bouncing back since the financial crisis. But with the market being so tumultuous lately, are they seeing a slowdown?
"Chelsea," a high-end escort in Manhattan who is originally from Canada, said business has only dropped off slightly into this year.
"I still gotta hustle," Chelsea said. "But I haven't really seen a dropoff."
Escort prostitute
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Has she sensed any fear from her Wall Street clientele?
"Not really, but most of them have been bitching about their bonus. I guess they didn't get paid what they thought they deserved," she said.
Her friend "Holly," who is also a professional escort, agreed. "There's not much difference between this year and last year, but I have noticed more guys wanting to party a little harder." She went on to say several of her peers have noticed the same thing—an appetite to party harder.
And after speaking with both of them it seems there isn't a lot of fear that their business will slow down anytime soon.
Bottom line: The escort industry has no fear of a slowdown.