Goldman: This Is The Most Asymmetric Basket Trade In The Market Right Now

By Louis Miller, Goldman Managing Director and FICC trader.

Right now the market  backdrop is uniquely sunny, and equity market participants are taking advantage. It’s simply not often that you have i) above trend growth, ii) falling inflation, iii) a fed on hold, iv) growing conviction in a soft landing, and v) positioning coming from a place of meaningful defensiveness.

Looking at 4-week periods since 1976 with: