The S&P Chart showing breakout level(generated from investing.com)
Citi’s Strategy for Equity market in 2024
Citi recommends, Investors should anticipate pullbacks in the US equities market and given the current overbought conditions, think about taking advantage of these chances, according to Citi equity strategists.
Citi’s study indicates that 19 of the 24 industry groups are at or close to overbought values at the moment. Based on their view that the rally will expand beyond the impact of mega-cap expansion, the strategists recommend a barbell approach.
The strategists stated in a note that “a broadening playbook is justified on many fundamental, sentiment, and trading inputs.”
They continue to be overweight in IT and industrials and favor growth and cyclical clusters. Because of their strong fundamentals and appealing values, banks have been raised to an Overweight position in terms of sector allocation.
In a same vein, durables and retail also go to Overweight, and it’s possible that customer concerns are already included in. Cars and consumer services, however, are classified as Underweight.
Real estate has been lowered to Market Weight in reaction to a significant reduction in interest rates. The general tone points to a gentle landing, highlighting the state of the market as the year draws to a close.
The analysts continued, “The implication is to expect volatility ahead, but with an eventual Fed pivot as a north star.”
“Overall, the advice is to anticipate setbacks and strive to accept them,” they said.
Will the markets continue its upward movement? Well this is a Trillian dollar question and only the time will tell and not to forget skyrocketing US Debt.
All the forecast being made by all the financial institutes is considering the Fed’s guidelines of reducing interest rates in 2024.