Hedge funds turn cautious on stocks to start 2025, dumping shares at fastest pace in 7 months

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Investment Strategy Notícia

Stock Markets,S&P 500 Index,Goldman Sachs BDC Inc

Hedge funds were net sellers of U.S. stocks in each of the five sessions from Dec. 27 to Friday Jan. 3.

While many are still celebrating the stock market's stellar 2024, the smart money on Wall Street has already shifted to a defensive mode at the turn of the calendar. Hedge funds were net sellers of U.S. stocks in each of the five sessions from Dec. 27 to Friday Jan. 3, dumping shares at their fastest pace in more than seven months, according to Goldman Sachs prime brokerage data.

Fast money investors that use short-term trading strategies and leverage are bailing on stocks after the S & P 500 wrapped up 2024 by scoring a second consecutive annual gain above 20%, spurred by confidence over lower interest rates, economic strength and profits from artificial intelligence. The S & P 500 is expected to gain another 12% in 2025, ending the year around 6,630, according to the average strategist forecast from the CNBC Market Strategist Surve y.

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