Citigroup Turns Cautious on U.S. Stocks, Drops "Overweight" Call and Closes Equal-Weight S&P 500 Long
Citigroup on Tuesday, October 13, dropped its "overweight" call on U.S. equities and closed its long position in the S&P 500 Equal Weight Index (.EWGSPC), saying it was taking some risk off the table as signs of market exuberance build. "We tactically take some risk off the table," the brokerage said.
The bank pointed to its POLLS indicator, which tracks positioning, optimism, liquidity, leverage and stress. Citigroup said the indicator recently reached levels that have historically coincided with market peaks.
Citigroup stressed that it has stopped short of turning bearish on stocks and is not advocating a broad flight to safety. It said it is growing more cautious on equities as market gains appear increasingly vulnerable to signs of trouble.
The move contrasts with Goldman Sachs, which on Monday upgraded global equities to "overweight," citing more attractive valuations following the recent market pullback — leaving two major banks adjusting their equity calls in opposite directions in the same week.
The S&P 500 Equal Weight Index tracks the same 500 companies as the traditional S&P 500 (.SPX) but gives each stock roughly equal weight, reducing the influence of mega-cap companies and offering a broader gauge of the market.
(Source: Reuters)
Source: Reuters
Published by GSM · USA (original Chinese edition)
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