Citi recommends buying US stocks on dips: Any pullback ahead of the US midterm elections could present a strategic positioning opportunity.

TechFlow reported on August 21 that Citigroup (Citi) stated it remains optimistic about stock market performance and advised investors to consider increasing their equity allocation if markets pull back ahead of the U.S. midterm elections. The bank maintains an “overweight” view on U.S. equities, citing improving corporate earnings expectations and a gradually loosening market liquidity environment. Although concerns related to artificial intelligence have recently intensified, the overall market has not yet shown clear risk signals.

Citi continues to maintain a positive outlook on the U.S. stock market, noting that sector rotation may limit the market's downside. Historical data indicates that periods of market weakness ahead of U.S. midterm elections are typically followed by strong year-end rallies, suggesting there may be opportunities to accumulate positions at lower levels.