These Are The Most Crowded Longs And Shorts Across Sectors

Earnings kicked off last week with the big banks (JPM, WFC, MS) reporting a mixed bag (record equities trading, mediocre everything else, jump in loan-loss reserves) which continued with a similar picture from Goldman this morning. 

Adding to slowdown concerns, we got statements from prominent CEOs such as Jamie Dimon: “I expect more credit problems and recession is a likely outcome”; and Larry Fink: “most CEOs he talks to says we’re already in a recession.” In this context, corporate commentary will be important as policy changes likely won’t be reflected in backward looking 1Q result. Expect many companies to take advantage of this downdraft in stock prices to cut expectations and guidance as tariffs are likely to impact corporate profits and behavior.