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Fear And Loathing On The World's Largest Trading Desk: Goldman's Traders Reflect On Today's Crash

Tyler Durden's Photo
by Tyler Durden
Authored...

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.