By Tony Pasquariello, Goldman head of hedge fund coverage
The market narrative boiled down to two things this week: geopolitical stress manifested in the places you’d expect (gold up, oil up, vol up), and US interest rates which chopped to higher highs on steeper curves. In so doing, the equity market was pushed around on significant risk transfer, and it’s very clear that some large index shorts were set.
One notable feature of the landscape: while S&P absorbed a few hard punches, it’s the weakest hands that just keep underperforming; witness US small caps and Chinese equities took out the YTD lows.
