| Short interest for the U.S. Stock Market is currently at levels rarely seen throughout history. This chart is from the BofA Global Fund Manager Survey. What it shows is startling. Not many times over the past two decades have we seen this many investors betting on lower prices. You can count them on one hand: COVID, the European Debt Crisis/China crash in 2015, and the Global Financial Crisis/Great Recession. They're just as bearish today. Let me say that again: Liberals are as angry as they've ever been, even compared to some of the worst market events in living memory. And the short-sellers are out there shorting every stock in sight. This is AFTER back to back years of 20%-plus returns for the S&P 500. The Nasdaq doubled over the past couple of years. We're seeing historic returns among stocks all over the world in 2025. Shorts Are Guaranteed Buyers Humans can't think straight when their stress levels are elevated. They're out there fighting trends. They're so angry and scared that they're completely forgetting about the fact that asset prices trend. And the trend is, and has been, up. One thing that people forget about short-sellers is that the only way for them to close out their positions is to buy back the stocks they're short. In other words, shareholders – people who own stocks – are only promising to be future sellers. Shorts are guaranteed to be future buyers. The more short-sellers, the more future buyers there are. And, right now, there are more shorts out there who will eventually have to buy stocks than at almost any other time this century. That's a good thing for those of us who own stocks and who embrace this bull market. It's not so good for those who act irrationally and try to fight trends because they're upset about who won an election... Or they think the Fed is too slow... Or they can't believe stocks are rising in this economy... Should we feel sorry for people like this? I don't. I'm here to profit. And humans behaving irrationally makes it easier for me to do that. Shoutout humans. YOUR ACTION PLAN If you want to see how I'm helping traders 20x their money within weeks of a quickly approaching government-mandated event, I recommend checking out my free upcoming masterclass. Here you'll learn the REAL story happening right now and why investors need to pay attention. Click here to learn more about the market "Pivot Point." Stay sharp, JC Parets
FUN FACT FRIDAY New all-time highs and an upcoming rate cut? The S&P 500 closed just a few points shy of all-time highs on Thursday, with the S&P 500 nearing its February record of 6,144.15 to gain 0.8%. The boost came amid rising expectations that the Fed will lower interest rates as early as July. The current consensus is a rate cut as soon as July is less likely, with September being a more likely window. To see how we're playing the current markets, click here to join The War Room.
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