The stagflation trade is proving to be a rare winner as the stock market rout continues.
The Goldman L/S Stagflation basket—which benefits from rising commodity & healthcare stocks while betting against consumer discretionary and chip stocks—has gained nearly 18% in 2025. Source: HolgerZ, Bloomberg
The S&P 500 fell 1.4% to a 6mth low, down 10.1% from recent high and so in correction territory.
First 10%+ drawdown since 2023. Source: Bloomberg, HolgerZ
U.S. TARIFFS CHEAT SHEET
Source: Wall St Engine @wallstengine, Bloomberg
SP500 corrections are usually good buying opportunities
Source: Mike Zaccardi, CFA, CMT 🍖@MikeZaccardi
Visualizing the Rise in Global Coal Consumption ⚡️
Source: Visual Capitalist
What a change of perception in 3 years...
It seems that the West too often underestimates China China has achieved what they deemed impossible to do. We've seen this first hand in the EVs, electric batteries, solar panels, wind turbines and renewable energy. We might see it with AI as well Source: Cyrus Janssen @thecyrusjanssen @richardturrin
🚨US inflation rate is FALLING as expected and there is more to come:
US CPI Core Inflation dropped to 3.1% in February, the lowest in 4 YEARS. Supercore CPI fell to 3.9%, the lowest since October 2023 (driven by Airfares). All metrics came below forecasts. Expect more progress as economy slows. Source: zerohedge
Mag 7 valuation premium now the lowest in 8 years
Source: Mike Zaccardi, CFA, CMT, MBA, Goldman Sachs
