A massive bet by hedge funds on a stock market crash is raising alarms among 401(k) holders, pension fund investors, and everyday Americans. With the US economy expected to crumble under President Donald Trump’s leadership, these wealthy investors are placing enormous bets against Wall Street stocks.
According to data from Goldman Sachs, hedge funds have taken a drastic turn in their betting strategies, with ‘short’ positions against US stocks skyrocketing by 10 times more than bets on continued growth. This shift reflects growing unease over the future of the American economy under Trump’s presidency.
The latest market panic is partly attributed to the emergence of Chinese AI powerhouse DeepSeek, which has disrupted the dominance of US tech companies like Alphabet, Amazon, Apple, and Microsoft. The company’s chatbot has sent shockwaves through Silicon Valley, leading to massive losses in these stocks.
As hedge funds make huge profits from a potential stock market collapse, the real victims could be everyday Americans who rely on their 401(k)s and pension funds for financial security. If this trend continues, it may put millions of workers at risk.
Financial analysts and experts warn that macroeconomic uncertainty is fueling these concerns. UBS analysts have echoed these sentiments, stating that uncertainties surrounding Trump’s policies, the global economy, and central bank actions are persistent.
Even influential hedge fund Elliott Management has sounded the alarm, warning that speculative bubbles could wreak havoc if markets crash. The message from Wall Street is clear: the market is on the edge of a precipice, with catastrophic consequences awaiting American workers who invested in Trump’s economic promises.
Source: https://www.dailymail.co.uk/news/article-14348965/Hedge-funds-massive-bet-stock-market-crash-raises-alarm.html