Goldman Sachs: Expects $40 billion in stock dumping next week.

On November 21, Goldman Sachs stated in a note to clients that the S&P 500 index has fallen below a closely watched level, which has opened the door for trend-following hedge funds to potentially sell nearly $40 billion in stocks over the next week. The S&P 500 index fell below 6725 points on Wednesday. Goldman Sachs noted in a later communication to clients that trend-following hedge funds view this critical threshold as a signal to either sell positions or increase short bets on further declines in stocks. According to Goldman Sachs' calculations, after stocks fall below this level, approximately $39 billion in stocks could be sold globally over the following week. If stock prices continue to decline, the bank estimates that systematic trend-following hedge funds could sell up to about $65 billion in stocks. Trend-following hedge funds aim to capitalize on signals at the beginning of market trends—whether rising or falling. These signals can be based on volume in the market, price movements, or changes in asset prices throughout the trading day. Goldman Sachs' report indicated that before the stock sell-off began, these hedge funds had gone long on approximately $150 billion worth of global equities. Goldman Sachs noted that the last time stock prices fell below these closely monitored levels was in October, and prior to that, on April 2, President Trump announced a series of tariff proposals. ( Jin10 )