Weakening Liquidity and Mega IPOs Warning

Goldman Sachs warns that a $14bn US pension sell-off at month-end, combined with weakening market liquidity, could significantly impact equity prices. Positioning remains crowded in Info Tech while short interest across the S&P 500 has reached a 15-year high.

Key Takeaways

• 1.US pensions are modeled to sell $14bn of US equities for month-end rebalancing, representing a major technical headwind.
• 2.Short interest in the median S&P 500 stock is at 3.0%, the highest level since late 2011.
• 3.S&P 500 Top of Book liquidity has weakened by $5bn in one week, standing 24% below the YTD average.

Table of Contents

• 1. Hedge Funds
• 2. Prime Book
• 3. Mutual Funds
• 4. Fund Flows
• 5. Positioning
• 6. Retail
• 7. Momentum
• 8. Liquidity
• 9. Vol
• 10. Yin and Yang

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