Citigroup Strategist: AI Trading Rally May Persist as Earnings Remain Strong

According to Citigroup strategist Dirk Willer, it is premature to declare the artificial intelligence-driven trading rally over, as corporate earnings remain robust and liquidity has not tightened sufficiently to burst asset bubbles. Willer noted that rotation into European equities amid falling oil prices would likely be temporary, while the bank maintains an overweight stance on U.S. and emerging Asian markets. He added that bull markets typically require rising interest rates to end; however, with the Federal Reserve yet to raise rates and its balance sheet still expanding, the current market strength may persist.
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