The US indices, including the S&P 500, are primed for a 10% correction, Citigroup Inc.’s Tobias Levkovich, US equity strategist said in his latest client note.
Key quotes
“A 10% pullback in US shares seems very plausible.”
“Our current caution reflects several factors, including ebullient sentiment readings, stretched valuation levels and slipping earnings revision momentum.”
“With limited upside even to others’ bullish targets, a neutral stance is realistic.”
“The S&P 500 seen at 3,800 by the year-end.”
“Expect the index to trade in a 3,600 to 4,000 range” this year.
“While they can back off 10%-20%, we do not envision a 50%-plus collapse.”
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