$XHYT

Goldman Sachs warns equity market liquidity tailwinds are fading as positioning becomes crowded, with $25B pension rebalancing flows, exhausted CTAs, and collapsing breadth creating near-term pullback risks.

Historical data shows stocks recover quickly from conflicts with 7% average drawdowns and 55-day recovery times. Strong earnings and energy independence support market resilience amid geopolitical tensions.

WTI crude spikes near $120 on Iran tensions; S&P 500 resilient at 3% below records. Strait of Hormuz shipping status critical for determining oil prices and market direction.