Gold "Looks Particularly Interesting" To Goldman; Equity Index Resilience Hides Bad Breadth, Worse Sentiment

In conversations with clients recently, Goldman Sachs flows guru, Lee Coppersmith, notes that a lot of investors seem increasingly uncomfortable with this market. (full note available here for pro subs)

Despite the index price action remaining resilient through more hawkish policy pricing, continued geopolitical uncertainty and an ongoing debate around the durability of the AI trade, navigating the daily swings underneath has proved difficult. Client performance shows some of this challenge: the GS Equity Fundamental L/S Performance Estimate fell -1.02% between 9/11 and 9/17 versus +0.35% for MSCI World TR, driven by -0.95% of alpha on the back of long-side losses and another -0.07% from beta.