Goldman Sachs The Markets Climbing the “wall of worry”
Jun 27, 2025
Shawn Tuteja, who leads ETF and custom baskets volatility trading at Goldman Sachs, joins Chris Hussey to dissect the current market landscape. They explore the 'wall of worry' concept, revealing how geopolitical tensions are paradoxically spurring a record market rally. Tuteja highlights booming sectors like AI and semiconductors, while cautioning about risks in lower-quality investments. The discussion also touches on an impending tariff deadline, which could significantly influence market dynamics and requires careful investor consideration.
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Markets Climb Wall of Worry
- Equity markets have climbed a "wall of worry" despite geopolitical tensions and trade policy uncertainty.
- Passive flows, including over $1 trillion in corporate buybacks, have supported this resilient rally to near all-time highs.
AI Trade Drives Sector Focus
- The AI sector remains highly favored, with semiconductors as the market's most loved sector.
- Investors view the current environment as a stock pickers market, focusing on winners and losers amid policy changes.
Middle East Impact Fades
- The Middle East conflict initially raised market volatility and energy prices, but concerns have largely eased.
- Current market implied volatility is at lows not seen since before March worries, signaling investor confidence in a slow, stable summer.