Citigroup advises overweighting stocks, adding on dips before U.S. midterms

Citigroup advised investors to remain overweight equities and consider increasing positions if markets retreat before the U.S. midterm elections. The bank said improving corporate earnings expectations and a more accommodative liquidity environment continue to support stocks, while recent concerns about artificial intelligence have not produced clear market-wide risk signals. Citigroup remains positive on U.S. equities and said sector rotation may help limit downside risk. Historical data also suggests that periods of weakness before U.S. midterm elections have often been followed by strong year-end performance, potentially creating opportunities to buy on dips.

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