Goldman’s Flood Sees Potential For ‘Extreme’ Rally in Stocks

Speculative investors have largely held on to their bullish positions in individual stocks while building hedges through bearish bets on products such as exchange-traded funds and index futures. It could also, however, fuel outsized gains if good news pushes investors to unwind those hedges, according to John Flood, Goldman’s head of Americas equities execution services and partner. “If we were to get a headline declaring the conflict over, you could see a sharp move higher at the index level,” Flood said in an interview.