US pension funds are expecting a $20 billion share sell-off at the end of the month as part of their month-end rebalancing operations, according to a report from Goldman Sachs' trading desk. According to Goldman Sachs, the total value of this $20 billion ranks in the 86th percentile of net purchases or sales of similar rebalancing since 2000. The reason for this is that many pension plans adjust their equity-bond allocation ratios (which can be seen as a large-scale version of the traditional 60/40 portfolio). While stocks have performed well this month, bonds have underperformed, meaning that in the model portfolio, some major adjustments are needed to bring the two asset classes back into balance. Brett Kenwell, US investment analyst at eToro, said: We are not used to seeing such volatility in the bond market, especially pension funds or institutional investors, who are almost all in the billions of dollars. When these rebalancing operations unfold quickly, it can indeed become a "compass" for the short- to medium-term market. Whether it is a 90-day pause in trade talks, a delay in the deadline for negotiations with the European Union, or a legal process to prevent Trump from implementing tariffs, I expect the general consensus on Wall Street is that the worst of the tariff issue is over and the situation is evolving in the direction of detente. (Jin Ten)