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Steamrolled by a rally whose velocity is the strongest in decades, bears are giving up. At the start of August, the median S&P 500 stock had outstanding short interest equating to just 1.8% of market capitalization, the lowest level since at least 2004, data compiled by Goldman Sachs Group Inc. show. All major sectors except energy saw bearish bets sitting in the bottom decile over the last 15 years.

relates to Bears Are Going Extinct in Stock Market’s $13 Trillion Rebound
For an example of why, look at Tesla Inc., the electric carmaker whose shares have surged almost 400% this year. At near 4.5% of total shares available for trading, its short interest has fallen to a record low, down from a high of 29% a year ago, according to IHS Markit data. Other examples where bears have been thwarted are Twilio Inc., Lumber Liquidators Holdings Inc. and Peloton Interactive Inc.

“It looks like all those fund managers over the past quarter went from being bearish and expecting a stock market crash to now bullish,” Shawn Cruz, senior market strategist at TD Ameritrade, said in an interview. “Sentiment’s turned positive about equities in general but also sentiment is turning positive for a return to growth.”

The tide is getting harder to fight with retail investors flocking to unprofitable companies such as Nikola Corp. and Moderna Inc. More money managers are forced to embrace the rally, ignoring this year’s profit contraction and banking on fiscal and monetary stimulus. At 26 times forecast earnings, the S&P 500 was trading at the highest multiple since the dot-com era.