Wall Street’s hottest trade may be losing steam. The S&P 500 momentum factor has suffered one of its steepest three-week sell-offs on record, according to Goldman Sachs data shared by investment strategist Mike Zaccardi, marking one of the sharpest momentum reversals seen since the early 1970s.
The chart, based on Bloomberg and Goldman Sachs Global Investment Research data, suggests investors are rapidly rotating away from some of the market’s most crowded winners. But while momentum has faded in one corner of the market, it hasn’t disappeared—it appears to be finding new homes.
