Citi(US:C) Zhi Tong Cai Jing·2026-01-12 12:46Group 1 - The core viewpoint of the article is that investors' willingness to diversify their stock holdings will continue to drive fund flows, with a projected 10% increase in a global benchmark stock index by 2026 [1] - The key drivers of this trend include the convergence of corporate earnings between the US and other regions, supported by government spending in Europe, re-inflation policies in Japan, and the widespread adoption of artificial intelligence [1] - Investors currently show stronger confidence in international stocks compared to the US, with a significantly higher bullish sentiment towards other regions and a broader overall risk appetite compared to a year ago [1] Group 2 - The Citigroup team forecasts that the MSCI global index will rise to 1,360 points by the end of 2026, approximately 10% higher than the previous Friday's closing [1] - Despite all major stock markets being valued above historical averages, US stocks are considered the most expensive, with a forward P/E ratio of 22, placing it in the 91st percentile over the past 25 years, while global stock market valuations are in the 90th percentile [1] - The team currently favors emerging markets (excluding the UK) and European markets, holding a neutral view on the US and Japan, and a low allocation to the UK and Australia [3]