Citigroup: The stock market has not collapsed, and the market is set to see a "violent rotation".

Beata Manthey, Citigroup’s head of European equity strategy, shared her views on the stock market, stating that the current weakness is not a signal of a market crash, but rather a "violent rotation" of market conditions spreading to broader sectors. She said, "The long-awaited broad market rally is now underway, and achieving this requires a sharp sector rotation. While current market volatility is intense, it is essentially capital hunting for new undervalued pockets." Manthey recommended the European financial sector, particularly bank stocks, labeling it an "anti-AI trade". She noted that European bank stocks have their own independent upside drivers, not dependent on tech themes. Currently, European corporate earnings revisions are near historical highs, and 80% of sectors are seeing analysts upgrade their valuations. She believes that if investors can look past short-term volatility, the outlook for holding stocks over the next 6 to 12 months remains positive.