--- title: "Goldman Sachs warns that it is not advisable to short U.S. stocks at this stage, as selling pressure is nearing its end, and positive news may trigger a \"short squeeze.\"" type: "News" locale: "en" url: "https://longbridge.com/en/news/280853813.md" description: "Goldman Sachs warns investors not to short U.S. stocks, believing that the current market structure may trigger a \"short squeeze\" when positive news emerges. Despite the poor performance of the S&P 500 index, the selling pressure is nearing its end, and the risk of continuing to increase short positions is significant. Goldman Sachs points out that the market needs to remain flexible, with steady capital inflows and no significant reduction in household investors' equity holdings, indicating long-term confidence in U.S. stocks. It is expected that pension funds will bring about $14 billion in net inflows to U.S. stocks by the end of the month, providing support" datetime: "2026-03-27T23:17:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/280853813.md) - [en](https://longbridge.com/en/news/280853813.md) - [zh-HK](https://longbridge.com/zh-HK/news/280853813.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/280853813.md) | [繁體中文](https://longbridge.com/zh-HK/news/280853813.md) # Goldman Sachs warns that it is not advisable to short U.S. stocks at this stage, as selling pressure is nearing its end, and positive news may trigger a "short squeeze." As geopolitical risks intensify and market volatility significantly increases, Goldman Sachs' trading department has issued a warning, advising investors not to hastily turn bearish on U.S. stocks. The current market structure is more likely to trigger a "short squeeze" when positive news emerges. From the market performance perspective, the S&P 500 index is heading towards its worst monthly performance since 2022, while the Nasdaq has entered a technical correction zone. Although Goldman Sachs does not see a clear upward path in the short term, its trading team believes that the current selling pressure is nearing its end, and continuing to increase short positions poses significant risks. The Goldman Sachs strategy team pointed out in a report that the market needs to maintain hedging and flexible operations, but "given the current position structure's sensitivity to short squeeze risks, it is not recommended to turn to short selling." Data shows that trend-following funds (CTA) have cumulatively sold approximately $55 billion in U.S. stocks this month, with the current net short position reaching $18.4 billion. Goldman Sachs believes that unless new macro shocks occur, this round of systemic selling "is nearing its end," and the market's risk-reward structure is gradually tilting upwards. ![WeChat Screenshot_20260327170804.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260328/1774650633975609.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) At the same time, risk parity and volatility control strategies are also continuously reducing stock exposure, with risk parity strategies having reduced over $20 billion globally, accounting for about one-sixth of their total long positions. However, from a funding perspective, there has been no significant "withdrawal" from the market. Equity fund inflows remain robust, retail investors have hardly reduced their holdings, and fundamental investors' overall positions are still close to historical highs. This means that once favorable news, such as a de-escalation of geopolitical tensions, emerges, the market may experience a magnified rebound. In terms of geopolitics, the U.S. and Israel have recently targeted multiple Iranian nuclear facilities and steel targets, while Iran continues to retaliate in the Persian Gulf region and has rejected U.S. President Trump's ceasefire request, further increasing market uncertainty. Additionally, Goldman Sachs expects that pension fund inflows at the end of the month will bring about $14 billion in net inflows to U.S. stocks, providing some support to the market. Furthermore, retail investors have only slightly reduced their stock allocation by about 1% from the peak, indicating that long-term confidence in U.S. stocks remains intact. 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