economy
Citi cuts U.S. stocks exposure. Firm is worried there's no 'quick end' to war
Citi strategists said they brought their U.S. small-cap overweight 'back to zero' as part of a broader effort to cut equity exposure.
TL;DR
- Citigroup strategists are reducing exposure to U.S. equities.
- Hopes for a swift resolution to the U.S.-Iran conflict are fading, increasing market risks.
- U.S. small-cap overweight position has been reduced to zero.
- Overall equity allocation has been shifted to neutral due to negative macro signals.
- Escalation in oil markets and lack of ceasefire progress impacts risk-reward balance.
- Major U.S. stock indexes are nearing correction territory.
- Despite geopolitical risks, equity markets have not yet shown signs of panic.