Citibank: After a sharp rise in global stock markets, a consolidation phase is expected, and investors may underestimate the risks

Golden Finance reports that on May 18th, Citigroup Wealth Chief Investment Officer Kate Moore stated that although the long-term outlook for the stock market remains positive, the global markets may soon enter a period of consolidation after a strong rally. Moore said that despite ongoing concerns about Middle East conflicts, stubborn inflation, and crowded investor positions, the market’s resilience in recent months has exceeded investors’ expectations. “In the past few weeks, the market has been focused on truly outstanding corporate earnings and the upward revision of spending expectations when discussing profits, which has made everyone very optimistic,” Moore said. “Sometimes it feels like the market can only focus on one thing at a time,” and “for some people, the rally since the March lows has become unsettlingly strong.” She warned that investors may be underestimating the risks faced in the second half of the year. “One of these, of course, is related to the ongoing geopolitical and energy crisis in the Middle East,” Moore said. “Secondly, is the spread of inflation, and I believe not enough people are factoring this into their expectations for the fundamentals in the second half.” (Jin10)