Goldman Traders Warn Against Shorting Stocks Amid ‘Upside’ Risk

Goldman Sachs’ trading desk cautioned investors against shorting US stocks in March 2026, citing heightened risks of a market squeeze if geopolitical conditions stabilize. Current market positioning is heavily skewed toward bearish bets, leaving equities vulnerable to rapid upside moves if tensions de-escalate unexpectedly. The warning highlights a potential short squeeze scenario, where forced buybacks could drive prices higher if sentiment shifts abruptly. Traders emphasize that elevated short interest increases systemic risk, particularly amid lingering geopolitical uncertainty and volatile macroeconomic conditions. The alert underscores Goldman’s view that downside protection strategies may backfire, urging caution in aggressive bearish positioning.