By Tony Pasquariello, head of hedge fund sales at Goldman Sachs
Observations From A Week On The Road
1. General skepticism from the trading community on equity markets. Most conversations center around the deep challenge faced by global central banks: how to move with serious force on inflation, without provoking an asset bust or a recession. While most acknowledge that its hard to foresee a near-term US recession when jobs are so plentiful and wage growth is so strong, the crowd struggles to envision how the Fed can ultimately pull off a soft landing. To be sure, this wariness is reflected in survey work and positioning metrics: AAII bull sits at the lowest level in 30 years, and length held at GS PB by fundamental hedge funds sits at the lowest level since April of 2020.