Is AI About To Crack? Goldman Warns Top Clients Of Unprecedented Split Within Momentum Trade

The momentum regime shift flagged here about a month ago is accelerating as the performance of short-term winners has diverged from longer term winners at unprecedented levels: it's as if the market has become bored with old momentum outperformers, and is kicking them to the curb in exchange for new, shiny momo leaders.

As Goldman's Guillaume Soria writes today to the bank's top sales and trading clients (full note available to pro subs), today, 3m momentum (GSPRHMO3) was up 5% as 12m momentum (GSPRHIMO) was down 6.7%, the largest underperformance in 5 years!