A leading analyst at Citigroup (C) is warning investors not to buy the current drop in stocks as they may end up regretting it.
Andy Sieg, head of the wealth business at Citigroup, says that investors need to exercise patience and wait for the dust to settle before wading back into the stock market. Sieg further warned that investors shouldn’t underestimate the “tectonic shift” that is happening in markets and the global economy as the U.S. imposes blanket tariffs of 10% on imported goods.
Speaking on Bloomberg TV, Sieg added that markets are likely to remain extremely volatile as business leaders and U.S. trading partners digest the reality that “this is a pivotal moment in terms of changes in global trade.”
Sea of Red
Sieg’s comments come as the market selloff resumes on April 10, with all three U.S. indices down sharply a day after they staged a brief but historic rally. News that the U.S. has imposed tariffs on Chinese imports that now total 145%, and that China’s tariffs on American goods stand at 84%, has sent markets reeling and led to ongoing uncertainty.
Sieg says that in the current climate, investors would be best advised to stay on the sidelines. Citigroup is urging its own clients to not let “emotions overtake reason” and to remain calm in “times of stress.” He added that he does believe financial markets have now passed their “peak shock,” though uncertainty remains high. C stock has fallen 13% this year.
Is C Stock a Buy?
The stock of Citigroup has a consensus Strong Buy rating among 16 Wall Street analysts. That rating is based on 12 Buy and four Hold recommendations assigned in the past three months. The average C price target of $88.28 implies 45.51% upside from current levels.
