Bets against US stocks tumble to a 16-year low

Omkar Godbole FXStreet Contributor

Bearish bets in US stocks have declined to at least 16-year lows amid continued monetary easing by the Federal Reserve and expectations for additional fiscal stimulus.

The median S&P 500 stock short interest as a percentage of market capitalization has declined to 1.75% – the lowest level since 2004, according to data provided by Goldman Sachs and FactSet.

The metric reached highs above 2.7% in March as coronavirus induced recession fears saw investors sell equities and other assets for cash.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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