Bankers Warn Against Panicked Investing Amid Market Turmoil

Don't buy the dip, amid global market sell-off, Citigroup wealth bankers say

A global market sell-off may be tempting investors to buy into the dip, but Citigroup's wealth management division is advising clients to exercise caution and avoid making impulsive decisions.

The warning comes as global markets have been hit by a wave of selling pressure, driven by concerns over the spread of the Delta variant, inflation worries and the ongoing US-China trade tensions. The S&P 500 index has fallen by about 4 per cent since the start of the month, while the Nasdaq composite has dropped by around 5 per cent.

Citigroup's wealth management division, which manages over $1 trillion in assets for individual and institutional clients, is advising investors to focus on their long-term goals and avoid making emotional decisions based on short-term market volatility.

"We're not seeing any significant changes in investor sentiment, and our clients are generally sticking to their long-term investment plans," said a Citigroup wealth management executive, who spoke on condition of anonymity.

The executive noted that while the current market conditions may be unsettling, they are not necessarily a sign of a broader market downturn. "We're seeing a lot of short-term selling, but the underlying fundamentals of the economy and the markets are still strong," the executive said.

Citigroup's advice to investors is to focus on their long-term goals and avoid making impulsive decisions based on short-term market volatility. The bank's wealth management division is also advising clients to maintain a diversified portfolio and to avoid over-allocating to any one asset class.

The warning from Citigroup comes as other market experts are also advising caution. "Investors should be cautious and not make impulsive decisions based on short-term market volatility," said a market strategist at a rival bank.

The strategist noted that while the current market conditions may be unsettling, they are not necessarily a sign of a broader market downturn. "We're seeing a lot of short-term selling, but the underlying fundamentals of the economy and the markets are still strong," the strategist said.

In the meantime, Citigroup's wealth management division is advising clients to focus on their long-term goals and avoid making impulsive decisions based on short-term market volatility. The bank's advice is to maintain a diversified portfolio and to avoid over-allocating to any one asset class.