Premium'Waging War Is Easier With Stocks At All-Time Highs': Goldman Delta-One Desk Warns Of "Complacency About Geopolitical Risk"
While markets shrug off another weekend of Middle East escalation and vessel attacks like it never happened, the S&P is right back at the highs, the VIX has a 14 handle, and financial conditions are as loose as they’ve been in years.
According to a note from Goldman Sachs delta-one desk-head, Rich Privorotsky (available here in full for pro subs), July’s “consensual unwind and deleveraging” is now largely done. Gross and net leverage looks healthier, the AI trade remains a one-way street for the broader market, and the upper-right tail is still cheap.