The slowdown in US dealmaking since 2015 is cause for concern, Citi's equity strategists say.
"In some respects, one of the scariest charts to look at currently is the number of announced mergers & acquisition deals over the past year or two," Tobias Levkovich, the chief US equity strategist at Citi, said in a note on Friday.
"M&A lawyers argue the 'uncertainty' factor, which has come about recently, given some unpredictable aspects of the new Trump administration, has been the issue. It only may explain the last six months, but the trend has been poor for about two years or more. In the past, there has been some correlation with the S&P 500 and thus it could generate more legitimate fears than some of the other excuses that are put forth for not wanting to buy American equities."
This year through June 5, 7,561 deals were announced, the lowest count since 2013.
Source: Business Insider
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