Citi has told clients to buy the next stock market dip, saying it expects a pullback in the run-up to the Nov. 3 midterm election and views that decline as an opportunity to add risk. In a research note published Sept. 25, the bank said it was impressed by how well the equity market has traded in light of higher oil, higher rates and poor September seasonals, and recommended clients "stay the course." Citi said it is waiting for a pull-back to add more risk because a pullback is typical after a first Fed hike rather than before, and because the market also tends to pull back into the midterms before the typical year-end rally takes over. The bank said it prefers U.S. equities because it believes the AI trade will continue, calling Emerging Asia the other attractive candidate when the time comes to add more risk, and noting the U.S. is more insulated from renewed oil upside. Citi also forecast that the Strait of Hormuz will likely be open for business again by the end of the year and predicted oil prices drifting down to $70 per barrel by the fourth quarter, while warning that short-term stress is still very plausible.
Citigroup Inc.Citi's own research note advises clients to buy the next market dip and stay the course, a bullish call from the bank itself.
CTBC Financial Holding Co Ltd