EddieJayonCrypto
8 Jul 25
Kate Moore, Chief Investment Officer of Citi Wealth, cautions that despite record-high stock markets, the macroeconomic outlook is uncertain with declining earnings expectations and ongoing estimate revisions. She notes market optimism is driven more by hope, particularly on the potential easing of ...
A top executive at Citigroup, Kate Moore, who is the Chief Investment Officer of Citi Wealth, has expressed caution regarding the current rally in stock markets despite record highs. In a recent interview, Moore highlighted that the macroeconomic outlook remains uncertain, with declining earnings expectations and continued adjustments to estimates for the year. She emphasized that uncertainty persists among CEOs and CFOs, reflected in surveys and soft economic data, making the market rally driven more by hope and expectations rather than solid fundamentals.
Moore pointed out that much of the optimism hinges on the hope that the Trump administration will ease punitive measures like tariffs, but she advises that relying on this as a primary investment strategy is risky. She advocates for staying invested in high-quality companies with consistent earnings and resilience against economic pressures, such as those with the ability to pass through costs or maintain strong margins.
Regarding technology and artificial intelligence sectors, Moore is not advising selling existing positions but cautions against adding to them at current high price levels. She recognizes Tech and AI as durable investment themes with ongoing spending regardless of economic growth, yet these sectors are currently priced very optimistically. This widespread ownership by institutional and individual investors makes it difficult to recommend deploying new capital into these areas at this time, despite their long-term potential.