Citi Wealth CIO sees higher-for-longer rates, stays underweight duration
C•Citi Wealth’s CIO cited a 25-basis-point Fed hike in September and persistent inflation in signaling a higher-for-longer rate regime, while maintaining an underweight to duration. The outlook remained risk-on through 2026, with gold and diversified natural resources highlighted as portfolio hedges.
1. Rates and portfolio outlook
Citi Wealth’s CIO cited a 25-basis-point Fed hike in September and persistent inflation in describing a higher-for-longer rate regime. The CIO stayed underweight duration, warning that bonds may no longer reliably hedge equity volatility in this cycle; gold remained a preferred hedge, and diversified natural resources were highlighted for inflation resilience tied to infrastructure and AI buildout. The outlook stayed risk-on through 2026, with focus shifting to AI monetization, physical AI capital spending and cybersecurity demand.
