Goldman Sachs on Fund Flows

Goldman Sachs experts report strong inflows from corporate buybacks and systematic funds, predicting the S&P 500 will hit new highs this week, fueling FOMO (Fear of Missing Out). Hedge funds are selling stocks at the fastest rate in over two years.

Scott Rubner recently stated that strong inflows from corporate buybacks and systematic funds should push the S&P 500 to a record high this week, increasing FOMO among investors. However, stock demand may wane in three weeks, potentially leading to another drop in U.S. stocks. Nvidia’s earnings threshold this quarter is much lower compared to previous quarters.

Another Goldman Sachs report shows that in August, "smart money" is selling global stocks at the fastest pace since March 2022, with the highest net sell-off in North American stocks. Hedge funds are skeptical about the sustainability of the market rebound, and geopolitical concerns remain troubling. Economic risks might soon become significant.