economy
Citi Wealth warns markets may be 'uncomfortably strong' amid mounting geopolitical, inflation risks
Global markets may be due for a period of consolidation after a sharp rally in equities, said Citi Wealth's chief investment officer Kate Moore.
TL;DR
- Markets have shown resilience despite ongoing Middle East conflict, inflation, and crowded investor positioning.
- A recent rally in equities has been driven by strong earnings, particularly in tech and AI, and positive U.S. economic data.
- The MSCI World Index is near record highs, up over 13% from its March lows.
- Microsoft and Amazon reported better-than-expected quarterly results.
- Near-term pullbacks could offer buying opportunities, but risks related to geopolitical events and inflation are mounting.
- Potential political and policy volatility in late 2026 is also a concern not fully reflected in asset prices.