Kate Moore, chief investment officer of Citi Wealth, believes that one type of equity looks especially safe in the face the economic instability brought on by the US and Israeli strikes against Iran.
Moore told Bloomberg Television the US large cap space has shown resilience.
The reason is that we need to know where the market was before this strike. It’s because US large cap stocks were seen as a lesser asset class, or part of equity markets.
The biggest moves were in non-US small caps, where the majority of the movement was driven by expansion of multiples and not earnings. The US large cap space, S&P 500 is also holding up well. This is because investors have already reduced their exposure to this part of the market .”
Citi Wealth CIO believes that the large caps are a safe place to invest within risk assets and will continue to outperform the market.
Moore highlights the “secular” growers in the large cap space despite the geopolitical uncertainty, but she notes there’s also a constant demand for industrial materials “on the cycle side”.
We’ve discussed copper, and many other items, as they relate to the AI story and CapEx. Even if the price of resources is volatile, I believe we will see that there are still many opportunities in the materials side .”
In the last five days, S&P has dropped 1.16%.
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The post One Category of Equities offers Safe Harbor and potential Gains Amid Global Turbulence, says Citi Wealth CIO could be updated as new information becomes available.
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