Bets against US stocks tumble to a 16-year low

Bearish bets in US stocks have declined to at least 16-year lows amid continued monetary easing by the Federal Reserve and expectations for additional fiscal stimulus. 

The median S&P 500 stock short interest as a percentage of market capitalization has declined to 1.75% – the lowest level since 2004, according to data provided by Goldman Sachs and FactSet. 

The metric reached highs above 2.7% in March as coronavirus induced recession fears saw investors sell equities and other assets for cash. 

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