EddieJayonCrypto
16 Jul 25
Citi remains confident in the US stock market's fundamentals and is ready to capitalize on any pullbacks. Equity strategist Scott Chronert highlighted that investors are focusing on potential earnings growth acceleration in 2026, influenced by tariff and policy developments. Citi holds a long-term b...
Banking giant Citi remains confident in the fundamental strength of the US stock market and is prepared to take advantage of any pullbacks. In a recent CNBC interview, Citi equity strategist Scott Chronert emphasized that markets tend to be forward-looking, with investors now positioning for a potential pick-up in earnings growth next year.
Chronert explained that the market is increasingly focused on the aftermath of tariffs and other policy news, particularly regarding their implications for 2026. He noted that as the year progresses, market attention usually shifts forward in the calendar, and current consensus earnings expectations suggest a solid acceleration in earnings growth in the coming year.
Citi maintains a long-term bullish stance on the stock market, viewing pullbacks as golden opportunities to buy. Chronert pointed out that expectations for five-year earnings growth are among the highest seen, placing significant pressure on companies to beat and raise earnings, especially within the growth sector. This dynamic introduces some nervousness, but it also sets the stage for volatility in the second half of the year.
Despite anticipating triggers for pullbacks, Citi sees enough conviction in the underlying structural fundamentals of the S&P 500 to encourage buying during dips. Their outlook favors using these market corrections as entry points, reinforcing a strategic approach geared toward long-term gains amidst expected market fluctuations.