Markets Edition: Hawks Vs. Bulls: Into the Knockout Stages?
KEY TAKEAWAYS
- Citi experts analyze a hawkish FOMC stance falling oil prices and a strong US dollar highlighting key shifts in global financial markets
- Divergent central bank policies and AI-driven inflation create unique fixed income opportunities and reinforce a bullish outlook for the US dollar
- Despite Fed hawkishness accommodative liquidity and robust earnings revisions indicate ongoing support for equity performance and the AI trade
Alex Saunders and Alice Zheng see the combination of a potentially hawkish Fed and declining oil prices as offering relative value opportunities in rates and in trading the USD, while not yet posing concerns about equity risk.
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Alex Saunders, Director with Citi Research
Alex Saunders is a Director with Citi Research and heads the Quantitative Global Macro and Asset Allocation team. Prior to joining Citi in 2021 he spent more than 15 years on the buy side as a researcher and portfolio manager for quantitative investment strategies. His most recent position covered asset allocation and US credit for Itau Asset Management. Before that, he worked for QS Investors and Deutsche Asset Management across a variety of asset classes. Alex holds an MA degree in Economics from London Metropolitan University and a BSc from the University of Liverpool.
Alice Zheng, Analyst on the Global Macro Strategies team
Alice Zheng is an analyst on the Global Macro Strategies team. Prior to joining the team, she worked on the GSP Credit Algo team and Emerging Markets Strategy. She joined Citi in 2021. Alice has a degree in Biomathematics and Economics from Rutgers University.
