Citi Wealth's Jeanne Sun seeks deeper stock market correction for buying opportunities
by@CNBC
Summary
Citi Wealth, a portfolio adviser for wealthy clients, expressed a desire for a larger stock market correction this year, viewing it as an opportunity to buy amid strong corporate earnings. Jeanne Sun, head of portfolio advisory at Citi Wealth, noted that while pullbacks have been shallow, the fundamentals remain resilient, and they maintain a bias toward equities despite concerns about rising interest rates. She emphasized that higher borrowing costs have not yet undermined the robust earnings growth of companies, and consumer spending continues to show resilience. However, Sun warned of potential near-term volatility due to uncertainties surrounding monetary policy and the upcoming U.S. midterm elections.
Analysis
Jeanne Sun: Jeanne Sun is head of portfolio advisory at Citi Wealth. She told CNBC's Squawk Box Asia that resilient earnings growth makes equities attractive and that pullbacks have been shallower than desired, while maintaining an equity bias into the fourth quarter. Citi Wealth: Citi Wealth is the wealth management division of Citigroup serving ultra-high-net-worth individuals, family offices, mass-affluent investors, and professionals. Its head of portfolio advisory, Jeanne Sun, recently stated on CNBC that the firm would have welcomed a deeper stock market correction this year as a buying opportunity given strong corporate fundamentals. Market Outlook: Citi Wealth maintains a bias toward equities heading into the fourth quarter despite higher interest rates and elevated Treasury yields. Volatility Factors: Uncertainty around monetary policy and the U.S. midterm elections could contribute to market volatility into October. Earnings Resilience: Strong corporate earnings growth continues to support equities even as borrowing costs rise.
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macropolitics