Sep. 8 at 2:17 PM
$GOOGL $GOOG Bank Of America report :
"BofA's estimates paint an unsettling picture: in an upside scenario, net buying from systematic strategies (hedge fund buying) amounts to only about
$9 billion; in a flat market, they could actually become net sellers of roughly
$1 billion (approximately NT
$32 billion); and once equities decline, the combined potential selling from CTAs and equity volatility control strategies would total approximately
$163 billion. This means that the programmatic buying power available to fuel further market gains is already quite limited, but once a decline crosses de-risking thresholds, various systematic strategies could sell stocks simultaneously, creating a self-reinforcing negative feedback loop of "falling prices, rising volatility, further position reduction."
https://finance.biggo.com/news/6ab98e8d-4d7c-4f15-a10e-db57bda41750