Citigroup advises clients not to chase the rally in stocks, buy the dip instead

Published 10/04/2025, 11:26
© Reuters.

Investing.com -- Citigroup Inc (NYSE:C). is advising its affluent clients to exercise caution amidst the current extreme market volatility. The bank's global wealth head, Andy Sieg, suggested that while the "peak shock" may have passed, it is not the right time to add to risky assets.

The Wall Street bank's advisers are recommending clients to refrain from buying the dip, a term used when investors purchase stocks following a significant drop in prices. Sieg made these remarks during an interview in Singapore on Thursday, emphasizing the need for discipline in a rapidly moving world.

Stocks experienced a rally on Thursday following a severe drop in recent days. This came after US President Donald Trump decided to halt proposed higher trade tariffs on most nations. The extent of these previous drops led to margin calls at some major investors, including large hedge funds and wealthy individuals.

Sieg referred to the ongoing tariff hikes in the US and China as a "tectonic shift," the effects of which are still uncertain in terms of economic activity and corporate earnings.

Sieg also mentioned the relentless flow of news, stating that the most sleep anyone has had is three to four hours. He noted that President Trump's strong focus on US manufacturing jobs and the deep interconnection of the global trading system are key issues that keep him awake at night.

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