Goldman Trader: The High-Growth/Falling-Rates Unstable Equilibrium Is Ending

At the beginning of the year, Louis Miller, Goldman Managing Director and FICC trader, argued the equity market would become more discerning.

He highlighted a number of factors that would drive that differentiation:

  • negative short alpha was already extreme,

  • positioning in options and on our sentiment indicators looked elevated,

  • 6 cuts was already pricing a lot,

  • and that the high growth, falling rates unstable equilibrium was potentially ending.

Authored by Tyler Durden via ZeroHedge January 17th 2024