Trend-Following Investors Sell $190 Billion in Global Stocks
Trend-following investors have offloaded approximately $190 billion worth of global equities over the past month, according to data from Goldman Sachs.
This wave of selling has pushed these investors into a combined net short position of around $50 billion, signaling a significant shift toward a more bearish stance.
Extended S&P 500 Decline Fuels Selling Pressure
The large-scale selloff coincided with five consecutive weeks of losses in the S&P 500 Index, marking the longest losing streak since May 2022.
This sustained downturn intensified selling activity, adding further pressure to equity markets in recent weeks.
Selling Momentum May Be Nearing Its Peak
According to Brian Garrett from Goldman Sachs’ trading desk, trend-following investors are now approaching their maximum short exposure levels.
He also highlighted that the impact of this selling pressure is starting to ease, suggesting that the bulk of the downside positioning may already be in place.
