Post by Augustine Chiagozie (@pabloexchange)

❕ Goldman warns up to $185B of forced selling could hit global stocks

Goldman Sachs says systematic funds could sell up to $185 billion of global equities over the next month if markets keep falling.

These funds, known as CTAs (Commodity Trading Advisors), don't react to news or earnings. They follow price signals. When key levels break, their models automatically reduce exposure.

Goldman's base case points to $7.5 billion of selling next week, including $4.5 billion from the S&P 500. A deeper decline could push that to $31.5 billion, with a worst-case estimate of $185 billion over one month.

According to Goldman, the recent weakness in tech stocks is being driven more by systematic positioning than by deteriorating fundamentals.

If the selling continues, algorithms could become the market's biggest sellers.

❕ Goldman warns up to $185B of forced selling could hit global stocks Goldman Sachs says systemati...

0 likes · 0 comments · 0 shares

Comments

Omotosho Kehinde Seun: This explains the recent tech selloff. If it’s CTAs de-risking on price signals, not earnings, then volatility could spike even without bad news. $7.5B next week is the base case, but the $185B worst-case is worth watching. The key will be whether S&P holds key technical levels. If not, systematic s...