Citi’s head of European equity strategy, Beata Manthey, said the recent weakness in stock markets should not be read as a sign of collapse. Instead, she described it as a "violent rotation" as money moves into a wider set of sectors and the long-awaited broadening rally begins. Manthey said this kind of market advance requires sharp sector swings, even if the near-term moves feel intense.
She pointed to European financials, especially banks, as a favored area and called the trade an "anti-AI" position. In her view, European bank stocks have their own upside drivers and do not depend on technology themes. Manthey also said earnings revisions for European companies are near historical highs, while 80% of industries are seeing analyst upgrades to valuations.
Her conclusion was that investors who can look past short-term volatility may still find the outlook for holding stocks constructive over the next 6 to 12 months.
On July 17, BlockBeats reported that Beata Manthey, Citi's head of European equity strategy, said the current weakness in stock markets is not a sign of a market collapse. She described it instead as a “violent rotation” as the rally spreads into a broader range of areas.
Manthey said, “The long-awaited broad-based rally is starting. To get there, the market has to go through sharp sector rotation. While volatility is intense at the moment, what is really happening is that capital is searching for new pockets of value.”
Citi favors European financials
Manthey said she prefers European financials, especially bank stocks, and described the position as an “anti-AI” trade.
She said European banks have their own drivers for gains and do not rely on technology-related themes.
Focus on the next 6 to 12 months
According to Manthey, earnings revisions for European companies are close to historical highs, and 80% of industries are receiving valuation upgrades from analysts.
She said that if investors can look through short-term volatility, the outlook for holding stocks over the next 6 to 12 months remains positive.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
