Goldman Sachs: What does it mean when hedge funds suddenly short the market in large numbers?
Goldman Sachs Analyst John Marshall pointed out that the hawkish shift of the Federal Reserve on December 18 led to a sharp decline in financing spreads, and the selling through Futures channels is still ongoing this week. This is similar to the situation in December 2021, indicating that the U.S. stock market may face the risk of a decline.
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What will happen to the US stock market and economy in 2025? Research companies warn: the more optimistic, the more dangerous!
BCA Research warns that investors' optimism regarding the USA economy and stock market in 2025 may lead to results falling short of expectations, as 'animal spirits' could drive up inflation, ensuring that interest rates remain high for a longer period. The company also stated that extreme optimism about the USA economy decreases the likelihood of an acceleration in growth for the USA economy in 2025.
Rare! Federal Reserve officials directly comment on the market: valuations are too high, making a significant drop likely.
This statement reminds one of Greenspan's warning about "irrational exuberance" in 1996, four years before the Internet Plus-Related bubble burst.
The "danger signals" in the US stock market: Why did hedge funds suddenly sell off?
Hedge funds have continuously net Sold USA Stocks for the past five Trading days, with the selling pace being the fastest in over seven months. Goldman Sachs believes this could be an important warning signal for investors.
