U.S. stock positions are crowded, and Goldman Sachs traders are preparing for a potential “bubble” burst.

Glonghui May 2｜After the record-breaking surge in April, US equity bulls are facing a moment of reckoning: there are hardly any remaining investors left in the market to buy in. At least, that appears to be the case among large asset management companies. The S&P 500 Index previously recorded its best performance since 2020, and after tens of billions of dollars of capital rushed into the stock market, the upward momentum is now beginning to fade. Currently, hedge funds and Commodity Trading Advisors (CTA) are reducing their buying positions. According to Goldman Sachs’ equity position measure, current position crowding has rarely been surpassed in the past five years.