Premium"Long One Corner, Short Everything Else": Goldman Says The AI Unwind Is Rotation, Not Liquidation
For most of the year, the only trade that mattered was the one everyone already owned. This week, it's the one everyone is trying to get out of.
The CXMT shock that started in memory on Monday went global overnight: Korea's KOSPI finished down 5.5%, with Samsung and SK Hynix down 8% and 10% respectively, Japan's Kioxia crashed 13%, and Nasdaq futures were down 70bps at one point while Russell futures were up 30bps, per Goldman's TMT desk. The SOXX is now on track for a sixth straight down day. Yet according to Goldman's EMEA delta-one head Rich Privorotsky, the most important thing about this selloff isn't what is falling. It's what isn't. Writing in his latest "GS Basics" note (available to pro subs), he says: