Goldman Traders Brace for ‘Froth’ Removal as Stocks Get Crowded

After a record-smashing advance in April, US equity bulls are facing a bit of a reckoning: There aren’t many investors left to buy.

At least that appears to be the case among big-money managers. After billions of dollars thrown into stocks amid the S&P 500 Index’s best run since 2020, the momentum is beginning to fade. Hedge funds and commodity-trading advisers are scaling back their purchases, and Goldman Sachs Group Inc.’s gauge of equity positioning suggests a level of crowdedness that’s barely been exceeded in the past five years.