Goldman Sachs trader: The market moved from fear of higher interest rates to “however good” and complacency started to heat up

On 14 August, Shawn Tuteja, a Goldman Sachs derivative trader, noted that US stock sentiment had changed significantly within two weeks. Whereas investors were primarily concerned about the Fed, long-term debt yields, geo-risks, and stock supply, a “however good” expectation emerged for the September FOMC: if Fed pigeons increase their interest rates, the market considers it helpful to stabilize long-term rates of return; and if interest-free, strong profits may continue to drive the spread of business to non-AI plates. At the same time, the client ' s net exposure has reached 67th percentile in the past five years, with total exposure rising to 89 percentiles and SPX Call ' s single-day trade reaching a record of 4 million. Tuteja does not judge that the index will drop significantly, but rather that the market has moved from the previous “wall of fear” to the potential for complacency: When both policy outcomes are interpreted as good in advance, the cushion against risks such as windfall hawks and long-term debt re-entry falls. Kim Xian