Bank of America: Hedge Funds Brace for New Downturn in US Stocks

11:30 - 13.11.2026


November 13, Fineko/abcnews. According to Bank of America Corp.’s trading desk, hedge funds are once again increasing short positions on US stocks most vulnerable to interest rate movements, signaling a potential new cycle of bearish bets.

Hotter-than-expected US inflation data, weak existing-home sales, and rising oil prices have prompted investors to bet against companies sensitive to high borrowing costs, dragging the Russell 2000 Index down 1.4%. Meanwhile, despite the S&P 500 recording its worst week since 2025 and valuations easing, investors remain hesitant to buy the dip as metrics such as the CAPE ratio and Buffett indicator suggest equities remain expensive.