Goldman Sachs: Hedge Funds are Increasing Bearish Bets on the US Stock Market at a Rare Pace Not Seen in Nearly Five Years

BlockBeats News, March 9th, Senior strategist Ed Yardeni has raised the probability of a crash for the rest of the year from 20% to 35%, citing the escalating Iran war impacting global markets. These adjustments reflect the growing concerns in the market: the ongoing Middle East conflict, coupled with inflationary pressures, will squeeze household spending, erode corporate profit margins, and complicate the Fed's policy path.

At the same time, Goldman Sachs data shows that hedge funds are increasing their bearish bets on the US stock market at a pace not seen in almost five years. In the week ending March 6th, hedge funds increased their short positions in stock exchange-traded funds (ETFs) by 8.3%. Goldman Sachs noted that as there are few signs of easing Middle East tensions, fast money investors are ramping up their bearish bets on the US stock market, expecting more pain ahead. (FXStreet)