"City Group" reduces the weight of US stocks, with its glamor

Strategic analysts have reduced shares at City Group, their views of US stocks, which are the increasing need to diversify investments of stocks, explains in light of the undermining of the trade war of economic growth and profits. A team led by Beta Mansathi said in a memorandum that the decline in the idea of ​​”US exceptional” will continue with the rise of the Chinese artificial intelligence model “Deep Seck”, financial expansion in Europe, and the escalation of trade tensions that are likely to cause more damage to US businesses compared to their counterparts in Japan and Europe. In this context, the team reduced its classification of US stocks from ‘extra weight’ to ‘neutral’. Strategists wrote: “The US exceptional engines are beginning to lose their momentum, either in terms of the gross domestic product or the profit of the arrow.” Fewer estimates of the profits of US companies have added: “US stocks are still relatively high, while the rate of reducing gains is increasing.” Analysts from the city group are in line with a group of major institutions in Wall Street, including Bank of America and Black Rock, because they have all reduced its view of US shares in light of the ambiguity around the consequences of the commercial policy of President Donald Trump, and the concerns raising it over a possible economic stagnation. The streets have written that investors still have a major exposure to US stocks, making them more diversification. Despite the decline in evaluating the “Standard & Poor’s 500” index based on profit estimates below the five -year average, it is still traded with a profitability of 19.4 times from the next twelve months profits, compared to 16.5 times for the MSCI Global Index, according to data collected by “Bloomberg”. The customs duties fight continues in a separate memo, Scott Crohnrt, head of the US stock strategy in “City Group”, reduced the performance of the “Standard & Poor’s 500” index by the end of the year to 5800 points compared to 6,500 points before, which is equivalent to an increase in an increase in an 8%. He also reduced his estimate of the profits of the 270 to 255 dollars index, citing the disorders caused by customs duties and indicators of the slowdown in economic growth. “Crystate’s struggle with China still adds a dose of tension and anxiety … and the feelings of cautious optimism that prevailed at the beginning of the year have now become a state of complete uncertainty.” Markets survive the decrease in the opposite, Manti and her team have increased the rating of Japan’s two -degree -weight -to -” -plus” plus weight “shares, referring to the attractiveness of low assessments in the Asian market and the possibility of acquiring an exemption from US customs duties. The team retained its positive classification of the euro area at an ‘extra weight’, suggesting that the market has fully considered the impact of 20%of customs duties, and that financial stimulation and policy facilitation will provide extra support. In the same region, the team increased its classification to UK shares to an ‘extra weight’ based on low assessments. The strategists also reduced their classification of the emerging markets from ‘neutral’ to ‘low weight’, due to the different impact of customs duties in the Chinese sectors. However, they have maintained an ‘extra weight’ classification for some markets in this category, such as India, which is less likely to be influenced by commercial fees, along with Taiwan, Chile and South Africa. The recommendations of Maneti and Crunert vary with the opinions of the company’s macro economic strategies, which increased the ranking of US and European equities last week to an ‘extra weight’, after Trump announced the freezing of customs for a period of 90 days.