Goldman Sachs: Global cross-asset holdings are systematically shifting towards a defensive style

Goldman Sachs' latest holdings report shows that global cross-asset positions are systematically shifting towards a defensive stance. Its sentiment and position indicators have dropped to the 46th percentile, the lowest since April, diverging from the strong PMI figures. Fund flows clearly favor fixed income (with inflows of $95 billion year-to-date) and safe-haven assets, with increased appetite for risk-off allocations and a net price premium in physical gold ETFs. Within equities, there’s a synchronized rotation into defensive sectors, with momentum ETFs seeing the largest outflows of the year and financials and industrials being sold off. Overall, the market exhibits contracting risk appetite and a strengthening of defensive positioning. For the full content, see the original link below.