Why Stocks Are Getting Wild

This episode of "The Markets" features an interview with Brian Garrett, head of the equity execution team at Goldman Sachs, who discusses current market volatility and investor positioning. Garrett attributes market fluctuations primarily to uncertainty surrounding the Federal Reserve's December rate decision, noting that recent statements from Fed governors have caused significant market reactions. He observes a shift among investors from high-growth tech stocks to more defensive sectors like healthcare, financials, and industrials, describing it as a move from "80 miles an hour in the left-hand lane" to "55 in the middle." Garrett also touches on decreasing liquidity as volatility increases and suggests hedging strategies, including rotating into S&P equal-weighted indices and using VIX call spreads. He concludes by emphasizing the critical importance of the Fed's December rate decision for year-end market performance.