Citi CIO adds cybersecurity as new structural investment theme for 3Q26

Citigroup’s CIO kept a constructive view for 3Q26, urging investors to stay fully invested despite policy-driven volatility risk in 2H26.

U.S. large-cap equities remained the preferred risk asset, citing strong earnings growth, productivity leadership, and secular tailwinds.

Fixed-income stance stayed underweight duration, favoring short- to intermediate-term bonds on higher-for-longer rate expectations.

Credit view shifted up in quality, warning tight lower-quality spreads do not compensate for incremental risk.

Cybersecurity was added as a structural theme, with AI expected to lift attack sophistication and sustain enterprise security spending.