Hedge Funds Are Ramping Up Stock Shorts to Five-Year Highs. Goldman is Warning of a Squeeze.

Source: International Business Times

Michael M. Santiago/Getty Images Hedge funds are building bets against stocks to unusually elevated levels, creating conditions that could turn a market rebound into a sharp rally as bearish investors scramble to unwind their positions. Bloomberg reported Thursday that hedge funds' bearish stock exposure was approaching a five-year high, citing Goldman Sachs data.