In this episode of The Markets, Chris Hussey interviews Brian Garrett from Goldman Sachs about the current state of the equity market. Garrett suggests fading the recent S&P rally, noting systematic demand is waning and fundamental buyers are positioned lower. A recent investor survey revealed a decreased concern about recession, but Garrett points to potential volatility triggers, including upcoming US-China trade discussions and rising rates. He suggests two trades: using call options to hedge against upside potential and trading "dual digis" to profit from lower equity values and higher yields. Garrett is closely watching jobless claims, believing retail investors' heavy equity positions make the market more sensitive to employment data.
