The most important chart for the current US stock market
Goldman Sachs equity derivatives expert Shawn Tuteja pointed out in a report that the most important chart in the stock market right now is the ratio of Goldman Sachs' "AI Yield Stock Basket" to the "AI Impaired Stock Basket." Since the tariff suspension in April, this ratio has risen significantly. Tuteja believes that this trade may signal potential risks in the stock market; if the trade continues to be effective, the market is unlikely to see a significant correction; conversely, if the trade starts to close out, the market may face difficulties
Goldman Sachs stock derivatives expert Shawn Tuteja commented in a report published on Thursday about "perhaps the most important chart in the stock market right now":
The chart shows the ratio of Goldman Sachs' "AI Yield Stock Basket" to the "AI Impaired Stock Basket."
Since the suspension of tariffs in April, this ratio has risen significantly.
Tuteja believes that this trade may be more indicative of the potential risks the stock market could face than any other trade. As long as this trade remains valid, it is difficult to see a significant pullback in the market. However, if this trade begins to unwind, the market could face difficulties.
