Premium"This Is Basically Just One Big Trade": Goldman's Pasquariello Says It's A Bull Market, But Only If You Look In The Right Place
For two months, Goldman's head of hedge fund coverage Tony Pasquariello has been telling clients the same thing: the primary trend is up, stay long. And for most of those two months, as we noted when we covered his last missive on Tuesday, the S&P responded by going nowhere, pinned to 7,700 while the Nasdaq made high after high.
This week the index finally poked its head above that congestion zone, printing a new high on Tuesday (close: 7,818) before Thursday's OpenAI revenue scare knocked it back to 7,765. One might expect a victory lap. Instead, in his latest "markets / macro" note (available to pro subs), the Goldman partner sounds less sure of himself than at any point since the summer. Some days, he admits, he reads a market that refuses to break under relentless pressure from every adjacent asset class as bullish. On other days he wonders whether it is simply complacent about a growing pile of risks, with the melt-up in global bond yields at the top of the list.