MILAN (Reuters) - Citi expects the MSCI All Country World Index to rise only 2% by mid-2022 as the current strength in corporate earnings fades and central banks turn less accommodative.
"Positive earnings revisions should support global equities in 2H21, but next year may prove tougher as EPS momentum fades and monetary tightening looms," the U.S. bank said on Tuesday.
Citi said the so called recovery trade was "not done yet" and it would buy the dips. In sectors, it favours traditional cyclicals, along with IT and it is underweight defensives.