Analysis: US pension funds are expected to conduct a $20 billion US stock sell-off by the end of the month

According to BlockBeats, on May 30th, a report from Goldman Sachs' trading department showed that US pension funds are expected to conduct a $20 billion stock sell-off by the end of the month as part of their month end rebalancing operations. According to Goldman Sachs data, the total value of this $20 billion ranks at the 86th percentile in net buy or sell movements similar to rebalancing since 2000. The reason for this situation is that many pension plans have adjusted their stock and bond allocation ratios (which can be seen as a large-scale version of the traditional 60/40 investment portfolio). Although stocks have performed well this month, bonds have performed poorly, which means that some significant adjustments need to be made in the model investment portfolio to rebalance these two types of assets. Bret Kenwell, a US investment analyst at eToro, said, "We are not used to seeing such large fluctuations in the bond market, especially for pension funds or institutional investors, whose size is almost in the billions of dollars. When these rebalancing operations quickly unfold, it may indeed become a 'compass' for the short to medium term market. Whether it is the 90 day pause in trade negotiations, the postponement of the deadline for negotiations with the EU, or the emergence of legal proceedings to prevent Trump from implementing tariff policies, I expect Wall Street to generally believe that the worst of the tariff problem has passed and the situation is evolving towards easing