U.S. stocks are no longer top pick as investors ‘take a step back,’ Citigroup survey finds

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With the stock market near record highs, the threat of a pullback is outweighing investor optimism for a big rally from current levels, according to a...

With the stock market near record highs, the threat of a pullback is outweighing investor optimism for a big rally from current levels, according to a Citigroup survey of its clients.

Investors worry most about Federal Reserve policy and inflation, said the Citi report, which collected insights over the past two weeks from pension funds, mutual funds and hedge funds. More than half of respondents indicated that inflation will be “sticky,” or persisting 9 to 12 months, with the largest block of those surveyed expecting the Fed to raise short-term rates in the second half of 2022.

With the U.S. stock market hovering around peaks, Citi’s survey found its clients preferring opportunities on the other side of the Atlantic.

 

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