Analysis: US Pension Funds Expected to Sell $20 Billion in US Stocks by Month-End

According to a report from the trading department of Goldman Sachs, as reported by Jinse Finance, U.S. pension funds are expected to sell $20 billion worth of stocks by the end of the month as part of their month-end rebalancing operations. According to Goldman Sachs data, this $20 billion total value ranks in the 86th percentile of similar net buy or sell rebalancing since 2000. The reason for this is that many pension plans are adjusting their stock-bond allocation ratios (which can be seen as a large-scale version of the traditional 60/40 portfolio). Despite the strong performance of stocks this month, bonds have performed poorly, meaning significant adjustments are needed in model portfolios to rebalance these two asset classes. eToro's U.S. investment analyst Bret Kenwell stated: We are not used to seeing such large fluctuations in the bond market, especially for pension funds or institutional investors, whose scale is almost in the billions of dollars. When these rebalancing operations unfold rapidly, they can indeed become a 'compass' for the short to medium-term market. Whether it's a 90-day trade negotiation pause, a postponed deadline for negotiations with the EU, or legal procedures preventing Trump from implementing tariff policies, I expect that Wall Street generally believes the worst of the tariff issues is over, and the situation is moving towards easing. (Jin10)