Latest Articles

HomeLatestCiti: Long-only Investors Slow Tech Buying, While Hedge Funds Increase Exposure
Advertisements

Citi: Long-only Investors Slow Tech Buying, While Hedge Funds Increase Exposure

Citi strategists observed net selling from long-only managers over the past week, with buying primarily concentrated in consumer discretionary and industrials, while their buying in the technology sector slowed.

Advertisements

On the flip side, hedge funds increased their tech exposure the most in the past week, after weeks of selling, followed by consumer staples. At the same time, hedge funds sold off in health care, utilities, and real estate sectors.

Advertisements

The recent sector performance aligns with a shift from reflation trades toward stagflation and Goldilocks scenarios, where tech outperforms, Citi noted.

Advertisements

Over the last three months, sector-implied regimes have notably changed. In April, the “Overheat” theme, akin to the reflation trade, dominated the market as global PMIs hit their lowest point.

By late May and early June, equity sectors “showed a market with a lack of conviction through a regime investing lens,” strategists said.

“Ultimately, the market would make up its mind and a clear pattern has emerged: out with the reflation trade and in with a tech market torn between Goldilocks and stagflation,” they added.

Which Stock Should You Buy in Your Very Next Trade?

With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.

In 2024 alone, ProPicks’ AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That’s an impressive track record.

With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.

Related topics:

Advertisements
Advertisements