Citi Recommends Buying U.S. Stocks on Dips: Pre-Midterm Election Pullback May Offer Positioning Opportunities

Odaily News – Citi remains bullish on the equity market, advising investors to consider increasing equity allocations if a market pullback occurs ahead of the U.S. midterm elections.

Citi maintains an "overweight" stance on stocks, citing improving corporate earnings expectations and a loosening market liquidity environment. Despite rising concerns over artificial intelligence in recent weeks, the broader market has yet to show clear risk signals. The bank continues to favor U.S. equities and believes sector rotation could limit downside. Historical data shows that weak pre-midterm election market phases are often followed by strong year-end performance, suggesting that current dips may present buying opportunities.