Goldman Presents The Great “Fade” Trade

“This phase peaked at the end of January this year – we have entered a ‘reflation pausation’. We think this is the result of a combination of worries: (1) Disappointing hard data vs. soft data so far, in particular core CPI, (2) commodity recovery fading and base effect on headline inflation rolling off, (3) Trump optimism fading, (4) European politics moving into the hot phase, and (5) first signs of growth momentum slowing.”

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