Fear And Loathing On The World's Largest Trading Desk: Goldman's Traders Reflect On Today's Crash
It was another dismal day in the market, and as Goldman's thematic desk writes after the close, "what started as a growth re-pricing from a very rich starting point is now morphing into a growth scare driven by tariffs, doge, retail selling, AI ambiguity, and a perceived willingness of the new administration to embrace short-term pain and/or create boardroom uncertainty."
For a sense of host how much everything has changed in the past 6 weeks, Goldman's Cyclicals/Defensives ex-Commodities pair (GSPUCYDE Index) is now down ~16% from the highs, and is a good proxy for what Goldman is seeing, as well as for real-time GDP.
Growth Scare: Cyclicals/Defensives ex Commodities (GSPUCYDE Index)
vs Consensus Forward 4-quarter US GDP Growth.