Citigroup shifts US stock view to neutral citing regulatory risk
Citigroup just shifted its view on US stocks from "overweight" to "neutral," pointing to rising market swings and worries about stricter regulations.
The S&P 500 has already lost $3 trillion, mostly because investors are uneasy about heavy spending on AI and possible government crackdowns.
Citi's team, led by Beata Manthey, even warned positioning on key indices, such as the Nasdaq, could reset lower into net-short territory if things don't settle down.
Citigroup upgrades healthcare and European shares
With recent political changes stirring up more regulatory talk in the US Citigroup is moving money elsewhere.
They've upgraded global healthcare stocks to "overweight" and European shares (except the U.K.), with European shares having lower exposure to technology-sector volatility and greater sensitivity to falling oil prices.
European food and beverage companies also got a boost: Citi thinks these sectors might ride out the current storm a bit better.