Goldman's Top 10 Charts Of The Past Week

Powell’s message at Jackson Hole unleashed the biggest cross-markets surge since April by striking a more dovish tone than what investors anticipated (but not our readers who were prepared). As we noted ahead of time, rate-sensitive names outperformed, with several high-beta baskets seeing 3-6% moves.

As Goldman trader Jacob Malmstrom writes, equities tend to rise as the Fed starts to cut rates even (or perhaps especially) when they start with markets close to ATH’s. Drilling down, Volatility and Momentum tend to be best factor performers 3 months prior to 3 months after first cut. Looking at earnings for Europe we’ve seen below average surprises for this season, contrary to the US where it's been the opposite and we've seen positive earnings sentiment with upgrade momentum especially in the US.