This dip in stocks is a buying opportunity

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This dip in stocks is a buying opportunity - Citi

Global equities, after a robust start to the year, have seen pullbacks in recent weeks. The downturn comes amidst a backdrop of stretched positioning and optimistic sentiment, with geopolitical tensions and the prospect of persistently high interest rates spurring profit-taking among investors.In the past two weeks, total equity funds have experienced $28 billion in outflows, approximately 0.1% of assets under management , affecting various regions.

“Tech and Industrials are the only sector funds with inflows YTD. One sign of broadening would be a YTD catch-up of positive flows into small cap funds, almost reversing cumulative outflows since 2022,” Citi noted. “In the US, the S&P500 and NASDAQ have seen bullish positioning declining even more and profit levels being reduced,” Citi’s team said.

 

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