Citi Wealth, which manages over $1 trillion in client assets globally, said it had hoped for a deeper stock market correction in 2023, judging the pullbacks observed this year surprisingly shallow given the strength of economic fundamentals. Jeanne Sun, head of portfolio advisory at Citi Wealth, maintained a bullish bias toward equities for the fourth quarter, believing earnings growth remains resilient enough to offset rising interest rates. According to her, real rates rather than inflation expectations are the main driver of higher rates, reflecting the underlying strength of the U.S. economy. Consumer spending and corporate investment remain robust despite mortgage rates above 7 percent, although risks persist around investor positioning and increasingly elevated earnings expectations.
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