By Bobby Molavi, Goldman Sachs Managing Director and Macro Trader
Another week and another all-time high.
At macro level, we saw our first central bank cut, and it was the SNB; we saw a central bank hike with BOJ (first time since 2007) and elsewhere we had a very dovish BOE and a slightly Dovish Fed. At the micro level, we continue see buying of all things AI, with a growing focus on not just the mega cap US names but also driving names like ASML, SAP to all time highs. UK catching a real bid have been a forgotten story. Whether bank value now seeing larger pool of capital looking at it after the recent velocity of the Italian, Spanish, Irish, Greek bank rips or the cheaper that US quality growth of a name like LSE...there is a growing Long only focus on all things UK. Long may it continue! One small smoke signal was the large profit warning from Gucci impacting the luxury space, as well as some weaker consumer trends and soundbites from likes of Nike and Lululemon in the US...something worth watching as if the consumer wobbles the market might follow.
