Citi Says Don't Buy the Dip as Market Swings

About this Video

• Video Title: Citi Says Don't Buy the Dip as Market Swings
• Channel: Bloomberg Television
• Speakers: Andy (presumably a Citi representative), Kate Moore (Citi's Chief Investment Officer - mentioned by name)
• Duration: 00:20:30

Introduction

This Bloomberg Television interview features a Citi representative advising against buying into market dips due to significant global trade policy shifts. The discussion centers on the impact of these changes on clients, market behavior, and investment strategies.

Key Takeaways

• Market Volatility and Uncertainty: The current market volatility is driven by significant and unprecedented changes in global trade policy. The speaker emphasizes the difficulty in predicting macroeconomic implications and the lack of updated corporate earnings estimates.
• Citi's Advice: Citi advises clients to exercise caution and avoid increasing risk assets. They recommend maintaining a disciplined approach, avoiding impulsive reactions to headlines, and limiting market exposure.
• Margin Calls and Market Functioning: While margin calls have occurred, they've been manageable and market functioning remains relatively orderly.
• Investment Strategies: Citi suggests focusing on non-correlated assets like hedge funds and structured notes for protection. They advise maintaining a core asset allocation and thoughtful, limited market participation.
• Long-Term Perspective: Citi emphasizes the importance of a long-term perspective, recognizing that the current situation represents a "tectonic shift" requiring patience and strategic decision-making. They highlight the enduring strength and role of the US Treasury market.