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Citi Wealth Wanted Deeper Stock Market Correction: Why They See Buying Opportunity
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CNBC TV18•01-10-2026, 14:43
Citi Wealth Wanted Deeper Stock Market Correction: Why They See Buying Opportunity
- •Citi Wealth's Jeanne Sun stated they would have welcomed a deeper stock market correction, viewing it as a buying opportunity due to strong corporate earnings and resilient growth.
- •The wealth management arm, which manages over $1 trillion globally, maintains a bias towards equities for Q4, despite rising interest rates and Treasury yields.
- •Sun believes the rise in interest rates reflects the underlying strength of the US economy, making equities an attractive investment.
- •Higher borrowing costs have not yet overwhelmed the benefits companies are receiving from robust economic and earnings growth, with growth overcoming increased rates.
- •While volatility may persist into October due to monetary policy uncertainty and US midterm elections, Citi expects a "pretty good fourth quarter in aggregate" for earnings.
Key Questions Answered
Citi Wealth would have welcomed a deeper pullback as a good opportunity to buy because corporate earnings and economic fundamentals continue to be exceptionally strong and resilient.
Citi Wealth maintains a strong bias toward equities heading into the fourth quarter, expecting a pretty good aggregate performance despite persistent volatility and uncertainties around monetary policy.
Investors should reduce excess cash holdings because elevated inflation has caused real, inflation-adjusted returns on cash assets like money market funds to become negative, eroding purchasing power over time.
