PremiumAI Vs Everything Else Hits A Record 10-Point Gap In Five Weeks; Goldman Says Start Buying The Losers
It's not the level, it's the speed.
That was the message Goldman's Louis Miller brought back after a week on the road with US Thematics' Faris Mourad, meeting macro clients who are rattled less by where yields are than by how fast they got there. The ~68bp rise in rates since the end of August is "concerning", and "had this rally taken six months instead, it would have been perceived differently." Making matters worse, oil and rates "were moving in line with one another but stopped and this has been unsettling for many" - which is a polite way of saying the macro playbook broke at the worst possible moment, just as ZH flagged in "The Crazy Continues: Stocks Up, Breadth Down; Yields Up, Oil Down" (Oct 5).