US, Canadian Short Bets Hit Record $2.13 Trillion as Goldman Sees Squeeze Brewing
Updated
Updated · Bloomberg · May 28
US, Canadian Short Bets Hit Record $2.13 Trillion as Goldman Sees Squeeze Brewing
2 articles · Updated · Bloomberg · May 28
$2.13 trillion in bearish positions across US and Canadian equities has set a record, after short interest jumped nearly $100 billion from late April, according to S3 Partners data.
Goldman Sachs traders say that buildup could fuel the market’s next advance through a short squeeze, especially in unloved sectors where investors are heavily positioned against stocks.
S&P 500 median short interest has climbed to 3% of market capitalization, Goldman prime brokerage data show, the highest level since late 2011.
The figures suggest a large pool of potential forced buying if share prices keep rising, giving stock-market bulls support from investors betting on declines.
Which 'unloved' sectors are most likely to trigger the next market-wide short squeeze?
Are company fundamentals now irrelevant in a market driven by short squeezes?
Is record bearishness the signal for a market crash or the fuel for a massive rally?