GOLDMAN WARNS OF POTENTIAL ‘EXTREME’ STOCK RALLY Goldman Sachs’ John Flood says hedge fund positioning could fuel a sharp stock surge if good news emerges. Speculative bulls have high gross exposure (307%) while heavily shorting ETFs and index futures, creating right-tail upside risk. A ceasefire in the Iran conflict or positive headlines could trigger 2–3% index gains as macro shorts unwind. Market volatility remains high due to war, AI, credit fears, and thin liquidity, while corporate buybacks support equities. Flood notes stocks need a resolution signal soon or risk further stress.(*Walter Bloomberg)