Citibank’s (NYSE: C) team of equity strategists have cut their stance on the worldwide financial sector to “neutral”, down from “overweight” on Thursday, citing the sector’s ultra-high beta equity trade in recent years.
Citi noted that global equities are up more than 63% from their March 2009 lows and that the magnitude of the rebound has been consistent with the bear market that preceded the rebound.
“Global equities typically grind higher in months 12 to 36 of a market recovery. So buy the dips and don’t chase the rallies too hard,” they said.
“Outperformance for ultra high beta sectors tends to fade one year after the market bottom”, they added.
