Sell Stocks If a Trump Win Drives a Rally, Citi Strategists Say
- S&P 500 gains being driven by ‘near-euphoric sentiment’
- Split Congress and Harris victory could be buying opportunity
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US stocks may be rallying ahead of a potential victory for Donald Trump in next week’s US election, but for strategists at Citigroup Inc., a clean sweep for the Republican party will be a signal to sell.
A Trump win is generally seen as good news for stocks because his proposals to lower corporate taxes would likely benefit company earnings. The Citi strategists argue, however, that the “near-euphoric sentiment” that’s driving the S&P 500 Index toward a sixth straight month of gains is leaving it ripe for a pullback.