Citigroup Beata Manthey said she’s not buying in the current rally because she’s worried the stock market has gone too far and there’s more bad news to come. Reflecting her preference for value, the strategist favors U.K. stocks over continental European stocks.
“Right now, the UK is a place where you can find pretty cheap defenses,” Manthey said. Earnings per share are likely to contract amid the energy crisis, underscoring the need for lower earnings estimates. Equities in the growth cycle are particularly at risk if rates are raised further, she said, and this part of the market loses the most.
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