:max_bytes(150000):strip_icc()/GettyImages-2246030890-4c07d8aad572446c9defafbda1974dfd.jpg "Citigroup CEO Jane Fraser Doesn’t Expect ‘Sell America’ Sentiment to Last in Markets")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2246030890-4c07d8aad572446c9defafbda1974dfd.jpg)
Key Takeaways
- Although investors may be reacting to headlines by selling American assets, Citigroup CEO Jane Fraser doesn’t expect the strategy to endure.
- Fraser said on CNBC Tuesday that she doesn’t see obvious investment alternatives.
The move away from American assets isn’t likely to last, Citigroup CEO Jane Fraser said.
On Tuesday, U.S. stocks plunged, the dollar fell and bond prices dropped, sending Treasury yields sharply higher, while investors piled into gold and silver. These are the sort of immediate reactions that are to be expected after recent headlines, Fraser said on CNBC Tuesday, when trading resumed after the White House announced over the long weekend that tariffs will be used in its quest to control Greenland.
Momentum will once again favor American assets, the Citigroup Inc. (C) leader said, stating: “I don’t see where else you [investors] go.”
“Never bet against the American entrepreneur. The consumer is strong,” Fraser said, later adding: “The geopolitical backdrop is a challenging one, but the companies know how to navigate through this.”
Why This News Matters to Investors
Financial markets have been volatile since President Donald Trump announced plans to impose fresh tariffs on countries that oppose his plan to assume control of Greenland. Executives and analysts are divided over how long current uncertainty may last.
Fraser said corporate leaders are confident that government figures will reach a resolution in the coming days. Plus, companies and investors have learned how to handle trade uncertainty and disruption in recent years, she said.
“The market’s been able to see through some of the noise and really focus on the fundamentals,” from a longer-term perspective, she said.
From that vantage point, the U.S. is in a strong position, Fraser said. Spending was robust during the holidays and could pick up this spring because of changes in the tax code, she said. Companies may also benefit from deregulation and recent spending on AI and other priorities, Fraser added.
Financial services firm Wedbush is also optimistic that the current acrimony will fade. “The bark will be worse than the bite on this issue and tariff threats as negotiations take place and tensions ultimately calm down between Trump and EU leaders,” Wedbush analysts wrote in a research note Tuesday.
