Hedge funds have lost confidence in trading, and have no choice but to short US stocks.

After the devastating impact of the tariff news on the market, hedge fund managers have been holding back and are still unwilling to make any major bets, with one exception: shorting US stocks. According to data provided by former Bridgewater Associates executive Bob Elliott, the so-called market confidence index has rebounded after falling to its lowest level in decades. Positions in major asset classes remain weak, falling to the lowest 10 percentage points since 2000 by the end of March.