Citigroup Says Switch From European Stocks to Emerging Markets
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Investors should rotate out of European equities into their emerging market counterparts thanks to a divergence in the economic trends underlying the two asset classes, according to Citigroup Inc.
The firm’s gauge of economic surprises is indicating a pattern disappointment in Europe, while remaining robust in emerging markets, wrote strategists including Jeremy Hale in an asset allocation note Thursday. Meantime, expectations for European earnings growth are the highest among developed markets and may be at risk of declining, they said.