Citi downgrades US stocks allocation

Analysts at Citi downgraded their U.S. stocks recommendation to neutral and upgraded China, figuring the U.S. economy may no longer outpace the rest of the world in the coming months.

"We had not fully implemented our view that U.S. exceptionalism is at least pausing, but this has become clearer," Citi's global head of macro, asset allocation and emerging market strategy, Dirk Willer, said in a note dated March 10.

"Today we therefore downgrade U.S. equities to neutral (having been overweight since October of 2023), upgrading China to overweight, leaving overall equities neutral."