Bear market roars on

Friday 2 September 2022

Goldman traders are not happy:

We continue to see methodical risk off behavior on our desk and I am not seeing any green shoots that this trend is going to reverse in the near future. Multiple inquiries from the Macro community for our most creative implementations RE shorting cyclicals vs long defensives. We were a 3 on 1 – 10 scale in terms of overall activity levels. Executed flow across US equities franchise -551bps sell skew vs 30d avg of -226bps. Today’s overall sell skew is 72nd percentile vs previous 52 weeks. Asset Manager sell skew is noteworthy at -18% which is 87th percentile vs previous 52 weeks. Materials is standout on sector front with -13% sell skew 78th percentile vs 52 weeks.

Morgan Stanley’s excellent Michael Wilson is sobering:

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.