Market stampede turns favourite defensive trades into danger zone

Financial epicentre: US House Speaker Kevin McCarthy (left) on a visit to the New York Stock Exchange. Goldman Sachs, the largest US lender, says it is confident that although pricier, quality trades will outperform in a decelerating growth environment. — Bloomberg

NEW YORK: Sometimes, when volatility jolts financial markets, the safest trades can quickly morph into dangerous bets.

That is what’s happening now in some corners, as investors spooked by the bank crisis and central bank uncertainty crowd into big-tech stocks and highly rated corporate bonds.