"Worst Day Since 2022": Wall Street's Top Traders Explain Why Momentum Suddenly Blew Up, And What's Next

Ever since mid-2022, they ruled markets with an iron fist, and a sharpe ratio that would make Bernie Madoff and  Warren Buffett blush. Today, however, it all came crashing down as momentum traders suffered losses for the history books. 

 As we touched upon earlier, Goldman's “high beta” or unconstrained momentum basket (GSPRHIMO) just had its worst day since 2022 (and briefly since 2020, but in either case surpassing the post-Deepseek selloff last January).