Citigroup turns cautious on US stocks as market exuberance flashes warning signs
SPY•Citigroup dropped its overweight call on US equities and closed its long position in the S&P 500 Equal Weight index, citing signs of market exuberance. It said its positioning indicator had reached levels historically associated with market peaks but stopped short of turning bearish.
1. Citi trims exposure
Citigroup said it was taking some risk off the table after its POLLS indicator, which tracks positioning, optimism, liquidity, leverage and stress, reached levels historically associated with market peaks. The move reflects growing caution over stretched sentiment, but Citi said it was not advocating a broad flight to safety.
