Market Watch: The Stock Market Isn't Reflecting Reality ... Yet, Warns Citigroup

Article by Shawn Langlois in The Wall Street Market Watch

‘We definitely feel that the markets are way ahead of reality. We really are telling every client to tap the market if they can because we think the pricing now couldn’t get any better.’

That’s Manolo Falco, Citigroup’s co-head of investment banking, explaining to the Financial Times why he believes the firm’s corporate clients should raise as much cash as possible before the reality of the pandemic sinks in for investors.

“As the second quarter comes along and we start seeing the pain, and the collateral effects of that,” Falco continued, “we think this is going to be much tougher than it looks.”

“Markets are pricing a V [shaped recovery], everyone’s coming back to work, and this is going to be fine,” Falco told the FT. “I don’t think it’s going to be that easy quite frankly.”

To read this article in Market Watch in its entirety, click here.