Goldman Sachs: The 'trade of the year' just got more complicated

Investment bank Goldman Sachs is flagging a big shift for a market strategy known as the 'HALO trade.' This particular trade has reportedly performed very well for investors throughout this year, delivering strong returns.

However, Goldman Sachs suggests its easy wins are now behind us. They see this successful strategy entering a more challenging period. Future performance will now heavily rely on how individual companies actually earn money and grow, rather than broader market trends.

This means investors might need to be more selective, as relying on past momentum alone won't cut it. Stock picks will depend more on solid business fundamentals.

Basically, the market's getting picky.

Related reading: The No-Nonsense Guide to Getting Your Money Under Control and Gen Z Cracking the Housing Market Code.