Citi Wealth Sees Growth and Persistent Investor Fear Supporting U.S. Stocks

Citi Wealth analysts favor U.S. equities as economic indicators point to continued expansion and consumer spending persists, while they view persistent investor fear as a signal historically linked to strong stock returns.

Purchasing managers’ surveys and other high-frequency indicators underpin the growth assessment, with the United States a particular bright spot. The analysts also see persistent fear signals in equity markets as a historically supportive backdrop for stocks.

Their view of bonds is less favorable. Strong economic growth, elevated inflation and fiscal concerns weigh on the bond market’s fundamental outlook. Recent bond rallies, the analysts say, have reflected market positioning.

The assessment adds to earlier coverage of U.S. stocks as growth and higher yields shaped the market outlook.