Goldman Sachs(US:GS) Hua Er Jie Jian Wen·2025-11-28 00:29Core Insights - A turbulent November has reset market positions and sentiment, providing a clearer path for U.S. stocks entering December [1] Group 1: Market Sentiment and Positioning - Prior to November, there was an overly optimistic sentiment in the market, with even long-term bears turning bullish, which led to significant market adjustments [2] - The adjustment was reflected in the internal market structure, with Goldman Sachs' unprofitable tech stock index dropping approximately 23% from peak to trough, and the most shorted stock basket declining about 29% [2] - The excessive bullish sentiment towards major tech stocks has cooled, with the options market showing a return to neutral positioning [6] Group 2: Market Breadth and Volatility - Market breadth has significantly improved, with the S&P 500's advancing/declining stock ratio moving from -150 to +150, indicating broader participation in market gains [8] - The Volatility Panic Index has decreased from its monthly high to 5, slightly above its three-year average of 4.6, signaling a cooling of panic sentiment [11] Group 3: Systematic Fund Flows and Investment Themes - Systematic funds have completed their de-risking process, with an estimated $16 billion sold in the S&P 500 over the past month, transitioning to a mild buying scenario of approximately $4.7 billion for the next month [13] - The investment theme around artificial intelligence (AI) is expanding, with companies in traditional sectors beginning to implement AI tools that enhance cost reduction and profit improvement [15] - Goldman Sachs has introduced a new stock basket index to capture the theme of "using AI rather than selling AI," reflecting a shift from narrative to measurable productivity [15]