Goldman Sachs: CTAs maxed out on U.S. equities, downside risk looms

Published 02/09/2025, 09:54
Goldman Sachs: CTAs maxed out on U.S. equities, downside risk looms

Investing.com -- Trend-following investors, also known as CTAs, bought $12.6 billion of US equities in August, pushing their exposure to the 100th percentile, according to Goldman Sachs.

The bank’s flow specialists note that these investors are now "maxed out" in their positions. While this doesn’t create an active headwind for equities, it does mean there will be less supportive flows during September, which is historically a weak month for markets.

Goldman Sachs warns that risks are positioned "asymmetrically to the downside," with potential selling pressure of $73.7 billion worth of US equities if markets turn negative.

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