‘Major Correction’ Unlikely Considering Investor Appetite, Says Citi


Richard Drew/Associated Press

Mom and pop are still watching the U.S. stock market from the sidelines. And strategists continue to see this as a positive.

“The lack of US retail investor interest in stocks has been stunning and equity market tops usually consist of overly aggressive individual investor interest in the asset class,” wrote Citigroup Chief U.S. Equity Strategist Tobias Levkovich. “In this context, it is challenging to suggest that the S&P 500 is due [for] a major correction barring exogenous shocks.”

A correction in stocks is widely viewed as a drop of 10% or more from recent highs. The S&P 500 has gone three and a half years without seeing a pullback of this kind. Easy monetary policy, strong corporate earnings and an improving economy have taken the stock market steadily higher. The last time the S&P 500 fell more than 10% was from April to October in 2011 when the large-cap index tumbled 19%…

‘Major Correction’ Unlikely Considering Investor Appetite, Says Citi

Categories : Uncategorized

Leave a Reply

You must be logged in to post a comment.