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Citigroup Inc. says it may be time to bet on Donald Trump.
Citigroup Inc. says it may be time to bet on Donald Trump.
With inflation trending lower and economic growth picking up globally, “Trumponomics” -- tax cuts and increased government spending -- has largely lost its grip on asset markets, Citi strategists led by Jeremy Hale wrote in a recent note. That’s made the risk-reward equation for the medium-term reflation trade favorable, they wrote.
“Citi economists have not changed their base case, still expecting fiscal stimulus and tax cuts or reform later this year,” the strategists wrote in a May 25 note. Citi is “slightly” overweight equities and underweight bonds. But it’s also overweight cash, “given that markets are rich and we want powder to buy dips,” they wrote...Read more>