One of Citigroup’s senior executives drew attention to the uncertainties in the background of the rise wave in the US stock market. Citi Wealth’s investment director Kate Moore described the economic picture as uncertain despite the recent records. In an interview with Moore’s CNBC television, it was emphasized that the movement in the markets was not based on basis.
US stock markets
Kate Moore said that there is no clarity in macroeconomic indicators and that the next six months contain unpredictable risks for both companies and general economy. According to Moore, various surveys attended by company managers support this uncertainty. In particular, the decline in earnings expectations and the uncertainty in economic indicators make the current rise of stock markets questionable.
“My pessimism is because a significant portion of the rise is not based on a solid basis. In this environment, we are rising when there is a decrease in income expectations. The real issue is that the uncertainty is still not finished. We have no clear idea of neither companies nor the economy.” – Kate Moore
Moore said that the market is based on the hope, positive expectations and the optimism of the US government, especially in customs duties. However, Moore pointed out that such a floor may not be a strong investment strategy. He said that investors should take care to stay in companies with solid, high quality and stable income.
Warning for crypto currencies
In the interview, Moore also shared his views on technology and artificial intelligence sectors. Moore acknowledged that these areas constitute a long -term and powerful investment theme. However, the current pricing in the sector is close to perfect and investors can be risky to make new purchases, he said. You can read all forecasts for technology and AI performance in US stocks under the umbrella of the “Future of Crypto Coins”. Since crypto currencies show full correlation with AI and technology shares, the warnings here also concern crypto investors.
“High quality companies, sectors and areas with sustainable income are very high. Although companies will continue to grow in technology and artificial intelligence, everyone is in this field right now. Currently it is difficult to invest. We do not sell our current positions.” – Kate Moore
Moore, especially technology and artificial intelligence companies, even if the general economic growth slows down will continue to see demand, he said. However, he said he did not recommend new purchases from existing price levels. He added that the sector is closely followed by all kinds of investor segment.
WARNINGS AGAINST RISKS
Despite the recent rise in the stock market, the uncertainty in general economic statements and company gains pushes investors to be cautious. Moore stressed that the effect of changes in trade policies and potential contraction on company profitability is not clear. It is pointed out that companies that can make sustainable profits and reflect this success at prices also have risks.
It is recommended to be more selective and cautious in investment strategies in the medium and long term. The opinion that the rise in the shares cannot be permanent unless the network of economic indicators cannot be permanent. According to experts, investors need to follow the basic indicators without getting caught in market enthusiasm.
From the reading of the news, it is understood that market participants should carefully evaluate the risks and take into account the basic indicators other than market dynamics in investment decisions. Especially in recent years, with increasing interest in sectors such as technology and artificial intelligence, the sustainability of the rise in the stock market has been discussed. Explanations of the managers show that the existing atmosphere in the markets should be monitored.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
