Skittish about buying the dip in U.S. stocks? Citi strategists say investors should go global

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Citi strategists advise clients to buy the dip in global stocks

Another group of Wall Street market strategists have signaled to their clients that it’s time to buy back into stocks — especially stocks that aren’t trading in the US.

While global equity funds saw their first net inflows over the past week since April, a group of analysts at Citigroup recommended to clients who are concerned about the durability of the rebound that they might be better off buying Europe or emerging-market equities, which have more attractive valuations than the US.

The fewer “red flags”, the higher the likelihood that stocks will trade higher 12 months out — at least, that’s been the general trend in the past, the Citi team said.

 

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