The Biggest Pain Trades

HSBC's Multi-Asset Bulletin highlights six contrarian 'pain trades' for H2 2026, maintaining a pro-risk stance while identifying opportunities in AI, USD, and European equities.

Key Takeaways

• 1.HSBC maintains a pro-risk bullish stance despite recent skepticism toward AI narratives.
• 2.Key 'pain trades' identified include an explosive USD rally, UST curve steepening, continued AI strength, and potential European equity outperformance.

Table of Contents

• The biggest pain trades
• Spotlight
• Pain trade #1: The AI trade continues unabated
• Pain trade #2: Europe outperforms
• Pain trade #3: An explosive USD rally
• Pain trade #4: US Treasury curve steepening
• Pain trade #5: EM yields decline / duration rallies
• Pain trade #6: US rate hike fears could derail Russell 2000 rally
• Key views across asset classes and our indicators
• Multi-Asset Chart Pack

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial