Citi’s Montagu Warns US Tech Rally at Risk From Profit Taking
Citigroup Inc. strategists have warned that the recent record-breaking rally in US technology stocks faces growing risks as investors seek to take profits. According to Citi's global head of equity and derivative strategy, Robert Montagu, the tech sector's outperformance this year has made it vulnerable to profit-taking. Montagu noted that the Nasdaq Composite Index has surged over 30% year-to-date, significantly outpacing the broader S&P 500 index. He cautioned that the tech rally may be at risk of a correction as investors look to lock in their gains. Montagu's warning comes amid concerns about the broader economic outlook and the potential impact of rising interest rates on high-growth tech companies. The strategist advised investors to be cautious and consider diversifying their portfolios to mitigate the risks associated with the tech sector's vulnerability to profit-taking.
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