Citi sees post-election stock rally stalling on profit taking

Date:

(Bloomberg) — The post-election rally in US stocks could run out of steam as investors start to take profits, according to strategists at Citigroup Inc.

Most Read from Bloomberg

Investors added to bullish bets last week, pushing exposure to the S&P 500 (^GSPC) to the highest level in three years, the strategists led by Chris Montagu said. Long positioning in the technology-heavy Nasdaq 100 (^NDX) and the small-cap Russell 2000 (^RUT) also reflect “an extremely bullish outlook.”

“Profits are elevated for both S&P and Russell and this could lead to near-term profit-taking, which may limit further upside,” Montagu wrote in a note dated Nov. 11.

The S&P 500 hit a record high last week on optimism that President-elect Donald Trump’s “America First” proposals would benefit domestic assets. The so-called Trump trade has also boosted small-cap stocks, which are likely to be supported by his protectionist stance.

—With assistance from Sagarika Jaisinghani.

Most Read from Bloomberg Businessweek

©2024 Bloomberg L.P.

Share post:

Popular

More like this
Related

Jockey who wins most televised races to pocket a staggering £500,000

They did not have long to think about it...

Zach Thomas lends hands to Habitat for Humanity event at Seminole Ridge High School

WESTGATE — Zach Thomas did plenty of hammering during...