What If Powell Takes 'Insurance Cuts' Off The Table Tomorrow? Goldman Trader Sees Opportunity In Credit

If you're worried that Fed Chair Jay Powell will take so-called 'insurance cuts' off the table tomorrow (amid a worsening growth outlook for the economy), Louis Miller - the architect of Goldman Sachs' US basket business - sees a trade opportunity in the most credit-sensitive stocks.

Miller believes a basket of the equity names included in the latest CDX HY credit derivative index - GSCBHYEQ - is a good one to consider on the short side.

Specifically, it’s at a local high relative to IWM, and Miller feels these names are next to get hurt if a high rates world with slower growth continues.