BTW, there might be issues with the blog updating on the app and on the web. I have contacted support, but as usual these days, it’s an AI bot and of little help.
Goldman Sachs’ Rich Privorotsky, Head of EMEA Delta One Trading, is beginning to see the ingredients for a more durable equity recovery after one of the most aggressive hedge-fund deleveraging episodes of the past decade. Energy prices are collapsing, inflation expectations have retreated sharply, credit remains resilient, and the political threat to the AI infrastructure buildout may prove less severe than investors initially feared. Yet he is not chasing the rebound. The distinction between short covering and genuine institutional re-risking remains critical, particularly with CPI approaching and questions surrounding the profitability of the AI infrastructure cycle still unresolved.
• Goldman’s latest trading-desk checklist identifies several conditions beginning to favour a recovery, although the most important confirmation remains outstanding.
• The damage to momentum and high-beta strategies has created an unusual positioning opportunity, but the route back could prove uncomfortable.
• A significant change in inflation expectations is quietly improving the macro backdrop, even as Treasury yields remain surprisingly stubborn.
• The AI trade is entering a different phase, where political uncertainty may matter less than the economics of the infrastructure already being financed.