Citigroup advises shifting investments away from U.S. stocks

Citigroup strategists have downgraded U.S. equities to neutral from overweight, citing concerns about a potential pullback in megacap growth stocks and U.S. recession risks. They recommend investors to consider alternative investments such as European stocks, which trade at a record discount to the U.S., and emerging markets equities. Citigroup also remains overweight on China and sees potential opportunities in basic resources, industrials, healthcare, media, technology, and telecoms. They caution against rushing into Japan stocks and highlight the importance of upcoming events such as consumer prices and the start of second-quarter earnings season.