Investors celebrating record highs in U.S. stocks may be overlooking the possibility that consensus trades unwind violently if economic or geopolitical conditions change in the second half of 2026, HSBC warned.
In a new report, the bank said that markets have become increasingly vulnerable to so-called "pain trades," unexpected moves that go against the prevailing consensus and force investors to unwind crowded positions rapidly. Rather than focusing on the risks everyone expects, the bank argues, the biggest market moves may come from scenarios few investors are currently pricing in.
