Don't Worry Too Much About the "AI Bubble"? Citigroup Executive: US Stocks Still Have Room to Rise

Andy Sieg, Head of Wealth Management at Citigroup, stated that he believes the US stock market bull run still has "room to move higher," as Citigroup has attracted significant inflows of funds from high-net-worth clients this year.

Andy Sieg has held this position since 2023 and is responsible for the strategy and operations of Citigroup's global wealth management business.

"Currently, there are no signs of excessive exuberance in the market, nor the kind of investor frenzy pouring money into stocks that typically appears at the end of a bull market," he said in an interview.

In November this year, the US stock market experienced considerable volatility: the S&P 500 fell by about 2%, heading towards its worst month since March, while volatility increased significantly.

In fact, the significant volatility in US stocks is not only reflected in the index decline but, more importantly, in the substantial selling pressure faced by US tech giants, led by the "Magnificent Seven."

As market fears about an "AI bubble" grow increasingly heightened, even after the "AI leader" Nvidia released strong earnings and optimistic forecasts after the market closed last Wednesday (ET), it only led to a brief recovery in market optimism. Soon after the market opened on Thursday, confidence fizzled out again.

Despite this, Sieg stated that Citigroup still believes the market has not yet reached a "tipping point," as earnings expectations for US companies remain strong. High-net-worth clients still hold idle funds and are seeking downside protection in the market through products such as structured notes.

Data disclosed by Citigroup shows that in the third quarter of this year, client investment assets increased by approximately 14% compared to the same period last year. Meanwhile, net new money inflows in the first nine months reached $37.1 billion, with the third-quarter inflow setting a record.