Goldman Explains The "Savage, Sudden, And Material Pain Trade" Higher In Stocks

Tyler Durden's Photo
by Tyler Durden
Tuesday, Nov 07, 2023 - 04:40 PM

Here we are again, writes Goldman Sachs trader Bobby Molavi.

The market handing out yet another dose of exactly what investors didn’t want.

A dovish, bad news is good news and fed is done (cuts could be coming) mindset which triggered a beta rip that was felt most acute in most shorted, lower quality, higher leverage and duration space.

Macro still rules the roost…and only a week after we hit 5% for 10 year yields…we found ourselves at 4.5% on the back of easing labour markets and slowing inflationary pressure…..only to see this week yields rising once more.

And so, we see a savage, sudden and material pain trade.