FOMO = Fear Of Momentum How Much More Pain, Is The Billion Dollar Question

FOMO = Fear Of Momentum: "How Much More Pain, Is The Billion Dollar Question"

BY TYLER DURDEN SUNDAY, JUL 26, 2026 - 10:58 PM While global equities closed the week roughly flat (again), the headline number masks the underlying volatility. As Goldman trader Benny Quek writes in his latest Weekend Thoughts note (available to pro subs here), markets have largely ignored the ongoing conflict, oil price move, and rate move. Well not any more, and the three are now jostling for attention at once. Likewise, as we have been warning for months, the AI narrative has once again shifted from hyperscaler capex headlines and towards the much harder questions namely margins, returns, and - especially - ongoing debt issuance. On the latter, Goldman now estimates $489BN of AI-related supply YTD (40% from hyperscalers), or 1.5x of 2025 full yearnumbers.

Source: Goldman Good luck with that though, when hyperscaler spreads are absolutely blowing out.

Not to mention tariff headlines are starting to heat up again. Meanwhile, as we warned on the first of the month... ... this has been another painful week for Momentum, which unwind is now in the fifth straight week with a historic crash in levered ETFs. As Quek writes, "How much more to go" is the billion dollar question. And in a warning that will disappoint the bulls, Qwek warns that he remains of the view that the AI/Tech/momentum positioning is not nearly as clean as we might believe, and he continues to see much more volatility in 3Q (and is happy to pound the table on a 'barbell' approach. There is a more detailed recap in last week's note: click here). And as the Goldman trader goes on two week hiatius, he leaves readers with a couple of charts to chew on in the meantime. This year’s volatility has been draining, to say the least.