SANTA MONICA, Calif. — Toss a bucket of chilly water on the inventory market rally.
“We stay cautious by way of the place to deploy incremental threat property. Our message has not been to liquidate your portfolio and go to money. Our message has been, proper now, there’s nice uncertainty. We have seen smooth information however not a variety of arduous information but,” Citi head of wealth Andy Sieg advised Yahoo Finance on the Milken Institute International Convention on Tuesday.
Sieg famous that there have been “as many downward [earnings] revisions as we have seen in an extended, very long time.” His crew is in search of further info earlier than taking up extra threat property.
“We typically assume the market’s going to stay in a buying and selling vary right here over the following few months till a few of these issues develop into extra seen,” he added.
Sieg oversees a worldwide wealth enterprise at Citi with greater than $1 trillion in shopper property and 13,000 staff.
Sturdy first quarter earnings stories from Meta (META), Alphabet (GOOGL), and Microsoft (MSFT) previously two weeks have powered the tech-heavy Nasdaq Composite (^IXIC) to a 13.5% acquire over the previous month. That is regardless of the likes of Apple (AAPL) warning that the Trump tariffs would hit its value base to the tune of $900 million.
On Monday, the S&P 500 snapped a nine-day profitable streak. It marked the longest profitable streak for shares courting again to 2004. The Dow Jones Industrial Common (^DJI) additionally ended a nine-day profitable streak, its finest since 2023.
All three main indexes are within the destructive for the 12 months, nonetheless, with the Nasdaq main with an 8.5% drop.
“I believe there’s two causes for [the rally],” Nuveen chief funding officer Saira Malik advised Yahoo Finance on the Milken Institute International Convention. “No. 1, when markets are likely to go down shortly, they really get better shortly. So historical past did repeat itself. And No. 2, I believe ‘Liberation Day’ was peak tariff ache, and we have seen a variety of negotiating since then, and I believe markets are beginning to respect that.”
As for Sieg’s wealth enterprise at Citi, it is coming off a powerful first quarter due to a powerful market previous to April’s “Liberation Day.” The division posted income of $2.1 billion, resulting in a 30% acquire in internet curiosity revenue. Consumer funding property had been aided by $16.5 billion in internet new funding property, bringing the full to $595 billion. Working bills had been flat 12 months over 12 months.
Whether or not Sieg can hold the momentum going amid heightened market volatility is up for debate. The backdrop is such that rich buyers might imagine twice earlier than allocating extra funds to non-public and public markets.