Supply Narrative Shift From AI To Rates

Goldman Sachs' one-delta desk warns that the market's focus is shifting from AI excitement to a massive supply of debt and equity issuance. This shift, combined with extreme risk appetite indicators, suggests a more volatile and potentially 'risk off' environment.

Key Takeaways

• 1.The market narrative is shifting from AI-driven growth to concerns over massive supply across bonds, equities, and commodities.
• 2.Risk appetite and equity momentum have reached extreme levels not seen since the year 2000, signaling potential volatility.
• 3.Bond markets are under pressure from massive supply, including $700bn in AI-related IG issuance and fiscal deficits.

Table of Contents

• Oil Sensitivity
• Semis
• Rates
• Technicals
• Risk

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