The Bank recommends taking long positions in shares, given the resistance that corporate bonds face against the "carnage" of the stock. They argue that more than 55 percent of the S & P500 listed companies are down 20 percent of their 52-week highs, reaching levels in the past 2015. However, this weakness did not appear in bond spreads. Citigroup advises investors to take advantage of this moment.
Citigroup's Tobias Levkovich says the bank is aware that a number of stock managers are still hesitating whether to go into the markets and wait for the right moment, especially before the upcoming holidays.
Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.
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