105 days ago • Posted by Charles-Henry Monchau
Citigroup follows the steps of JP Morgan and says the value rally is for real
Citi bond strategists expect US 10 year yields to hit 1.25% as we head into 2021. This should drive further rotation from Growth to Value. What to do? Some major non-consensus calls here from CITI: 1) Overweight the UK and Underweight the US; 2) In EM you buy Russia and Brazil; 3) Buy Cyclicals over Defensives and Growth. However, caveat that this seems to be medium term call - CITI does not believe one should chase these trades to the moon and not that this is a start of a multi-year trend (source: The Market Ear).