Portfolio adviser to the super-rich wanted a bigger stock market correction. Here's why
Citi Wealth would have welcomed a deeper stock-market correction this year, seeing any bigger pullback as an opportunity to buy.
TL;DR
- Citi Wealth viewed deeper stock market corrections as buying opportunities due to strong corporate earnings.
- Resilient earnings growth and strong U.S. economic fundamentals support equities despite higher interest rates.
- Rising interest rates are attributed more to real rates than inflation, reflecting economic strength.
- Companies' ability to overcome increased borrowing costs through robust growth is key.
- Consumer spending and corporate capital expenditure remain resilient.
- Constrained housing supply may alter the historical relationship between rates and the broader economy.
- Near-term volatility is possible due to investor positioning and high expectations for earnings.
- The core expectation is for continued earnings growth, but meeting ever-increasing investor demands is the challenge.