Positions have been flushed out, and valuations are reverting to the mean!

Goldman Sachs and other Wall Street institutions are collectively betting on a year-end rally in U.S. stocks:
Liquidity is flowing back, institutional portfolio rebalancing is wrapping up, and risk appetite is recovering. Historically, the odds have been favorable in the fourth quarter.

But they’re also warning:
Inflationary pressures could flare up again in Q1 next year—
Tariff pass-through, sticky rents, and a wage-price spiral are all laying the groundwork for trouble.

Whether it’s a rebound or a reversal, the market may be borrowing against the spring pullback!

Army’s outlook:
The real test isn’t in December’s candlesticks.
If inflation rebounds and rate-cut expectations retreat,
today’s crowded long positions will be a source of vulnerability.