According to Odaily, a strategist from Citigroup has warned that the US stock market is on the brink of a sharp decline. This prediction comes as a result of a decrease in capital inflow and a downward revision of growth expectations. Despite recently raising the year-end target for the S&P 500 index to 5600 points, the company has expressed concerns about short-term trends in a customer report represented by Scott Chronert.
The report highlighted that the flow of funds has slowed down and internal sentiment indicators are at an 'excited' level. Citigroup's forecast suggests a recession in the second half of this year. Concurrently, there has been a general decrease in growth expectations recently. The strategist from Citigroup stated that all these factors have prepared the stock market for a 'summer storm' or a 'sudden strong wind'.
Furthermore, the volatility of the election remains an uncertain factor, with both parties potentially facing fundamental pressures.