CTA positioning carries lingering selloff risk, Goldman says
Goldman Sachs warns that while commodity trading advisors (CTAs) are net buyers of equities in the near term, their current positioning could amplify weakness if markets sustain a downturn. Goldman estimates CTAs hold about $93 billion in long global equity exposure, with roughly $34 billion in S&P 500 futures. Over the next week CTAs are likely to buy (about $5.5bn if markets are flat, rising to >$7bn in a rally). Over a one‑month horizon, purchases could reach ~$18bn (flat) or >$37bn (rally), but a prolonged market decline could trigger more than $100bn of selling — an asymmetric risk that raises lingering selloff concerns despite limited immediate downside from CTAs.