The leading investment banks and investment companies of the United States, whose headquarters are located on New York Wall Street, believed in the future of the American economy and massively open long positions (on the purchase of assets), preferring them short (for sale), writes Bloomberg.
According to the calculations of the Goldman Sachs investment bank, the average cost of short positions on the main American stock exchanges is only 1.6 percent of the total transaction, which corresponds to a 17-year minimum.
At the same time, the volumes of long positions, open hedge funds, are close to many years of maximum indicators.
Analysts are seen from what is happening several reasons. The main one is large-scale stimulating measures from the government. In early April, Joe Biden’s president announced a new package of assistance to citizens, banks and companies by 1.9 trillion dollars.
Another reason lies in a bullish (aimed at the purchase per further growth) of the market orientation after the January Krakhah-Fund collars, massively opening short positions on the shares of the network of computer games Gamestop.
REDDIT resource users decided to “punish” investance banks and massively redeemed Gamestop shares, and call-options issued by financial institutions (contracts giving the right to buy a basic asset at a predetermined price) on them. It forced banks and hedge funds to urgently close short positions and buy out paper, as well as acquire them to compensate for possible losses on released options.
As a result, the holders of short positions suffered losses, and several funds went bankrupt. Analysts believe that this event determined the behavior of investors for a while forward.