Global equity returns may total 10 percent to 14 percent in the next six-to-12 months, according to Citigroup Inc "Reasonable-to-cheap valuations, the upturn in most leading indicators of earnings growth and strong momentum in equity prices in most regions are driving this more bullish outlook," Ajay Kapur, Citigroup's global strategist wrote in a research note to clients.
Kapur recommended clients to increase holdings in high-beta sectors - more susceptible to price volatility - such as biotechnology, brokerage/dealers, Internet, technology networking equipment makers and semiconductors.
Citigroup included high-beta companies such as Morgan Stanley, Goldman Sachs & Co, Google Inc, Intel Corp and Yahoo! Inc, in its model portfolio, according to the note.