Goldman Sachs: Market pessimism is reaching its limit once the war cools down, stock markets may rebound sharply

On March 30, traders at Goldman Sachs Group said that hedge funds 'massive short selling and systematic investor selling had increased the possibility of a sharp rebound in the stock market once the war in Iran cooled down. Goldman Sachs 'main brokerage trading unit said hedge funds have just cut their global equity holdings for the sixth consecutive week, driven mainly by short selling. The latest round of selling was wide-ranging, with net selling in all major regions. In a review of market data for the week ending March 26, the team led by Vincent Lin wrote that in Europe, short positions in products traded around macroeconomic themes have risen to 11%, the highest level in 10 years.