Breaking News! Goldman Sachs, Morgan Stanley, and JPMorgan Chase have all signaled a year-end rebound in US stocks! There are two reasons: 1. Short sellers have largely sold off. Institutional data shows that both long and short positions have contracted significantly, indicating that selling pressure may be nearing its end. Once buying returns, short sellers will be forced to cover, potentially leading to a rapid rebound. 2. US stock valuations are not as high as before. Global equities' forward 12-month P/E ratios have fallen to 15.6, and PEG ratios have dropped to 1.1, essentially returning to their long-term averages since 1997. Looking at US stocks, the current 10-year real interest rate is approximately 2.25%. According to Goldman Sachs' model, the S&P 500's fair forward PE ratio is about 18.9, currently only 17.9, leaving room for valuation repair. Furthermore, institutions have not significantly lowered their earnings forecasts for the next few years. Could this be a Christmas rally?