Global equities are retreating amid geopolitical tensions in Iran and a sharp 5-day correction in high-beta momentum factors. Analysts remain cautiously constructive on earnings, emphasizing a transition to earnings-led growth despite narrow leadership.
Key Takeaways
- 1.High Beta Momentum factors are experiencing a significant 20% drawdown over 5 days, though technical indicators suggest it is not yet oversold.
- 2.Global equities performance in 1H26 is strong but leadership remains narrow, with heavy concentration in AI infrastructure investments.
- 3.Markets are pivoting from a valuation-led rally to an earnings-led one, with consensus forecasting double-digit EPS growth across major regions.
Table of Contents
- WHAT WE'RE WATCHING
- Unconstrained Momentum (GSPRHIMO) is having its worst 5-day selloff since Covid
- How is GS US High Beta Momo seasonality?
- CORPORATE MACROSCOPE: A Macro Guide to the Micro World
- STANDOUTS FROM YESTERDAY
- GS RATING AND CONVICTION LIST CHANGES
- More in Macro
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Authors
Matthew KaplanJonathan HurvitzChloe GarberLilly Belt
Securities
SPXGSPRHIMORH
Themes
AI InfrastructureGeopolitical RiskMomentum Unwinding
Regions
GlobalAsia PacificEuropeUnited StatesIranTurkey