Citi warns of bigger market corrections ahead — but says ‘buy on the dips’



Stock markets have had a bumpy first quarter, and global equity analysts at Citigroup believe that this is only set to continue.

Fears of a sudden uptick in inflation, a potential trade war and possible new regulations on the tech sector have sent stock prices lower since the start of 2018. Analysts at Citi said Monday that it's likely that there will be bigger sell-offs ahead — but believes they would opportunities to pick up some bargains.

"Our Global Equity Quarterly recommends buying equities on the bigger dips," the bank said in a note Monday. "Our latest round of forecasts imply a rise in global equity markets of about 8 percent to the end of the year, led by Europe with about 13 percent," the bank added.

The forecasts are based on expectations of higher economic growth across the world and increased room for investments from several companies due to tax cuts in the U.S. However, the bank warned that risks are rising due to increased market volatility and higher interest rates — these could lower the margins that companies make by increasing their debt repayments and thus send stocks lower. A slowdown in global growth was also mentioned as a risk to Citi's outlook.

Nonetheless, the analysts still see upside for equity markets as these haven't yet reached a bear market — the moment when share prices move lower and are projected to continue falling.

Source: CNBC

 Trader Georgi Bozhidarov

Read more:

If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance


25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256

Universal numbers

World Financial Markets - 0700 17 600    Varchev Exchange - 0700 115 44

Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.

Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006

The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.


CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

chat with dealer
chat with dealer
Cookies policy