Goldman Sachs The Markets Finding opportunities in a “trickier” market
5 snips
Feb 7, 2025 
Brian Garrett, head of the equity execution team at Goldman Sachs, shares his expertise on the current market landscape. He highlights the increasing dispersion among S&P stocks, suggesting that investors can leverage this volatility for strategic stock selection. The conversation also delves into fixed income opportunities amidst low volatility and the impact of economic indicators on market sentiment. With a focus on finding chances in a trickier market, Garrett offers valuable insights for navigating these complexities.
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Increased Client Engagement
- Brian Garrett noticed a significant increase in client engagement regarding tariffs, a level he hadn't observed recently.
- This high engagement was especially notable during two volatile Monday sessions driven by DeepSeek AI and tariff news.
High Market Dispersion
- Last week's S&P dispersion was the highest since November 2020, rivaling levels seen during significant events like vaccine trials.
- This high dispersion, driven by challenges to U.S. exceptionalism and DeepSeek, suggests a shift towards theme and name-based trading.
Investing in Dispersion
- Investors can find opportunities within market dispersion despite higher single-stock volatility.
- Consider option spreads that fade high index skew, as high gross exposure makes a sharp market crash less likely.