Posted 4/4/2024, 6:02:00 PM
Citi: Value Stock Rally Unsustainable as Rate Cuts Could Halt Momentum
- Citi says the recent rally in value stocks is unsustainable long-term
- They attribute the value surge to higher interest rates and oil prices, which are vulnerable to volatility
- Despite Fed's dovish stance, 10-year yield spiked to 4.35%, sparking market and value stocks to follow
- Citi warns strength of discounted value stocks may seem appealing but investors should avoid chasing the rally
- Anticipated rate cuts later this year could halt value rally, with growth stocks expected to see stronger earnings growth