On the same day that Goldman's chief of US equity research David Kostin capitulated for the second time in the past month, and one month after cutting his year-end S&P price target from 5,100 to 4,900, the Goldman strategist followed up with another 200-point cut to his S&P price target after the close on Friday (he now expects the S&P to close the year at 4,700, i.e., down on the year) but even so Kostin is trying to spin this latest deterioration as a positive outcome, saying it represents a generous 10% "upside" from current levels. There was no positive spin, however, in the far more downbeat thoughts that Goldman's actual traders are sending out to their clients (trading desk research represents what Goldman actually believes, as opposed to the wholesale propaganda that emanates from sellside research).

So for an honest glimpse of how Goldman's traders view what is the most unstable and chaotic market since March 2020, we excerpt from the latest note (available to pro subs in the usual place) written by Goldman's head of hedge fund sales, Tony Pasqsuariello, who has aptly dubbed what is taking place a...

"paradigm shift."

I've been banging away at this craft for 23 years, and the past few weeks rank right up there with some of the highest velocity periods for markets that I've ever seen.

There are no mysteries here: global growth was slowing ... major policy shifts were underway ... then the geopolitical variable exploded.