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Wall Street’s ‘Smart Money’ Braced for Tariff Chaos. It Was Still Caught Off Guard. - WSJ

1. Tariff announcements led to massive market fluctuations and lost value. 2. Goldman Sachs clients sold stocks at the highest rate in 12 years. 3. Hedge funds shifted from bearish to bullish, causing volatility. 4. Hedge funds displayed significant gains despite broader market challenges. 5. Increased anxiety about quick market changes among hedge fund managers.

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FAQ

Why Bearish?

Hedge funds, major clients of GS, turned bearish indicating loss of confidence. Historical examples show that reduced hedge fund buying can lead to stock price declines.

How important is it?

Client activities at Goldman Sachs directly affect its revenue and stock valuation.

Why Short Term?

Immediate reactions to tariff uncertainty suggest volatility will impact GS shortly.

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