15 May 2025 | S&P 500

Citi and JPMorgan willing to invest in underperforming S&P 500 companies for short-term gains

Citi and JPMorgan willing to invest in underperforming S&P 500 companies for short-term gains

Citi and JPMorgan, two major Wall Street players, are willing to take risks by investing in shares of underperforming American companies. According to the strategists, this approach could allow the firms to secure quick, short-term gains. In the coming weeks, they plan to focus particularly on construction firms and technology equipment producers, Bloomberg reports.

Stuart Kaiser of Citigroup attributes this investment strategy to the temporary lull in the US stock market. Initially, Trump's import tariffs caused a sharp decline in S&P 500 stock prices. However, after successful trade negotiations between the United States and China last weekend, the index managed to offset its previous losses. Kaiser believes that traders who missed out on the favorable market conditions will now seek alternative profit opportunities. Investing in underperforming companies, many of which have yet to recoup their losses, is one way of doing so.

Confirming the strategy's success, the Goldman Sachs Weak Balance Sheet Index, which tracks about 50 small-cap firms, outperformed the S&P 500 in seven out of the past eight trading sessions.

Period: 28.11.2026 Expectation: 130 pips
Invest in SPX with 7,850 in view
Today at 10:52 AM 5
Period: 28.11.2026 Expectation: 4200 pips
Selling EURUSD down to 1.07000
Today at 09:37 AM 5
Period: 31.12.2026 Expectation: 60 pips
Buying Tesla stock up to $450
Yesterday at 11:06 AM 22
Brent sell
Period: 10.11.2026 Expectation: 400 pips
Brent crude sell-off targets $105
Yesterday at 08:48 AM 23
Period: 09.11.2026 Expectation: 1200 pips
Go short on EURUSD with 1.10000 in sight
26 October 2026 33
Gold buy
Period: 09.11.2026 Expectation: 265 pips
Invest in gold with $4,375 in view
26 October 2026 30
Go to forecasts