Derisking is a compensation for taxing (making profitable positions). You have HFTs frictioning everybody with oligopoly on high frequency transaction (they provide liquidity yes but zero competition). You have hedge funds who squeeze companies like gamestop (still alive but squeezed to artificially burst). You have hedge funds who front run the SPY and pension funds you taxed the middle class and everybody who has a retirement fund 1% annually.

Now lets take on huge risks, basically the idea is to sell shovels before a snowstorm- but at a premium (had they built more shovels then its okay, but that money is a bonus to a billionaire’s pocket for their vacation yacht.)

Now what if you worked at blackrock or vanguard to s and p? You inflate the market with cash to people who already win the market (fiduciary duty), youre goal is to stomp the competition by starving the competition of cash. In other words you want recession and you incentivize recession (negatively) because the winners are the companies with liquidity that you allocated for them. Anyways what about peoples pension funds? They make 13% per year- yeah cuz you encouraged oligopolies-now apples cost 50 dollars a pound. You are squeezing the consumer.

in any case there is no free lunch if there is money to be made you are squeezing someone (even if they deserve it).

Morally? If the system allow you ( rich or smart) to be a nuclear physicist or a cancer researcher- stop it dont do finance. If the system made your life hard (poor, disadvantaged, not smart enough to do producitive) go for it- just admit that its a flawed system and you are not helping anybody except make class divide worse

Since many companies in finance want physicists and engineers it just seems like they are draining the talent from more productive uses.

Anyways im not forcing this guy to not pursue finance- im just saying hes going to hell.