Analysis: U.S. pension funds expected to sell $20 billion of U.S. stocks by month end

According to Mars Finance, on May 30, a report from Goldman Sachs trading department revealed that US pension funds are expected to sell $20 billion in stocks by the end of the month as part of their month-end rebalancing operation. Based on Goldman Sachs data, the total value of $20 billion ranks in the 86th percentile among similar net buy or sell rebalancing actions since 2000. This situation arises because many pension plans are adjusting their stock and bond allocation ratios (which can be seen as a large-scale version of the traditional 60/40 portfolio). Although stocks performed well this month, bonds performed poorly, which means significant adjustments are needed in model portfolios to re-balance these two asset classes. eToro's US investment analyst Bret Kenwell stated: "We are not accustomed to seeing such large fluctuations in the bond market, especially for pension funds or institutional investors, whose scale is almost always in the billions of dollars. When these rebalancing operations unfold quickly, they can indeed become a 'compass' for short to medium-term markets. Whether it's a 90-day trade negotiation pause, a delayed deadline for EU negotiations, or legal procedures blocking Trump's tariff policies, I anticipate that Wall Street generally believes the worst period of tariff issues has passed and the situation is moving towards easing." (Jintian)