Citibank Maintains an "Overweight" Rating on U.S. Stocks, Optimistic About Technology and Healthcare Sectors

Gold Financial reports, May 11th, that Citigroup strategists say the U.S. stock market outperformance driven by a few large tech stocks is expected to continue. Citigroup’s team led by Beata Manthey maintains an “overweight” stance on U.S. stocks in global asset allocation, while favoring the technology, healthcare, and materials sectors at the industry level. Beata Manthey wrote in the report: “We expect the ‘concentration trend’ within the market to continue, and under the spillover effects of uncertainties caused by the Iran conflict, fundamental factors will once again become dominant.” Manthey added, “If progress is made toward a sustained ceasefire between the U.S. and Iran, it could trigger a rebalancing of funds, leading to a rebound in previously underperforming assets.” She also pointed out that the attractiveness of European markets is increasing. At the industry level, she believes the most attractive sectors in Europe (excluding the energy sector) include software, retail, and real estate.