Investors have placed 10 times more bets on US stocks falling than equivalent bets that shares in leading American companies would rise.
February 3, 2025

Hedge funds have bet billions of dollars against Rambo’s America amid concerns of a market crash. Via The Telegraph:

Data from Goldman Sachs show there has been a surge in “short” bets against US stocks, meaning traders will make money when they fall in value, in a sign of growing concerns about the market.

In January, investors have placed 10 times more bets on US stocks falling than equivalent bets that shares in leading American companies would rise, the investment bank said. It suggests many traders are sitting on huge profits from the chaos earlier this week, when shares in big tech stocks slumped following a panic over the success of rival Chinese AI DeepSeek.

The increase in short bets marks a major turnaround in sentiment from November, when hedge funds piled into long bets on US stocks, predicting they would rise.

Somebody’s gonna make a killing shorting stocks

ProTip (AKA alt_localgov) (@protip.bsky.social) 2025-02-02T03:17:44.950Z

Surge in investors ‘shorting’ U.S. stocks. "Hedge funds are making a multi-billion-dollar gamble against the US economy, betting Donald Trump‘s presidency will result in a massive market crash that could devastate 401(k)s, pensions, and household savings..." www.dailymail.co.uk/news/article...

Progressive News Service (@prognews.bsky.social) 2025-02-03T00:55:34.957Z

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