Citi: U.S. Stocks May See a Pullback in the Next Three Months

According to a report by Jinse Finance, Stuart Kaiser, Head of US Equity Derivatives Strategy at Citibank, stated that in recent weeks, the bank’s derivatives trading division has observed a significant increase in demand from asset management clients for products that short iShares indices or high-yield bond benchmarks. This may indicate that macro investors have formed a certain view on the market’s future direction, or it could suggest they are hedging against the rise in risk assets. The fact that people are hedging credit risk implies they believe a reasonable market correction is likely to occur within the next three months.