Citigroup strategists predict that the MSCI World Index could rise by 10% by 2025.
AInvestFriday, Jan 10, 2025 3:20 am ET
1min read
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Citigroup's strategists team predicts a 10% growth in global equities this year and notes that investment returns will be more balanced across regions. The team led by Beata Manthey believes the general upward trend in the market will become more apparent after U.S. President Donald Trump takes office later this month. For the future, they anticipate a 10% growth in global companies' earnings per share by 2025.In the U.S. market, Citigroup expects the performance gap between the "Big Seven" and other stocks to narrow. In terms of stock rating adjustments, global healthcare stocks are upgraded to overweight, while non-essential consumer goods, utilities, and industrial stocks are downgraded to underweight. Despite this, Citigroup maintains its overweight stance on U.S. equities.Moreover, Citigroup recommends Europe as the "most preferred cyclical diversification" region, as the market is "showing signs of a turning point" and investors can seek more investment opportunities due to "bearish peaks."

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