By Paolo Schiavone, Goldman Vice President and FICC/equity trader
Over the last 3 month we had positive cross assets correlations. USD up, Yields up , Equities up. But....
- Yields are no longer going up because of growth; they are going up because of hawkish monetary policy repricing.
- Stronger growth keeps the market worrying about the Fed as good economic news is now bad news for equities.
- Market Monday saw Long Equity = Fighting the Fed. I am not sure this is the correct medium-term interpretation.
