"Time To Fade The Rally": Goldman Lists 6 Trades To Hedge "While You Still Can"

With risk assets back at record new highs, Goldman trader Tom Shea thinks the market has moved too far, too fast and is providing a good entry point for cross-asset hedges for 2 different shock scenarios:

1. Re-escalation in geopolitical tensions causes a renewed selloff – for this risk shock a) buy SPY put spreads, b) own CDX IG protection, c) short HY cash (rate hedged to isolate for spreads), and d) buy front-end receiver spreads.
2. De-escalation continues, but investor concerns turn to growth weakness & higher inflation – for this risk shock a) buy GBPUSD binary puts, or b) buy upside on the BCOM grains index.