US stocks have started exiting bubble territory and returns from here will be muted, according to Citigroup Inc. strategists, as risks from monetary tightening and collapse in technology stocks mount.
“With the US exiting bubble territory, this calls for caution on US equity risk,” strategists including Dirk Willer wrote in a note. They expect “subpar” returns from here and recommend favoring cheaper, so-called value stocks over growth shares.
