Citi's Pettit: Fed's 2026 Outlook Key; Bullish on EM, Neutral on India

• Citi's Drew Pettit identifies the Fed's 2026 outlook as the key market trigger, not just the December 10 rate cut.
• The resilience of the US economy could broaden market performance beyond mega-cap stocks.
• Citi maintains a neutral view on India due to strong growth already reflected in high valuations and recent underperformance.
• India's underperformance (2% YTD vs 27% for MSCI EM) is linked to currency weakness and tariff-risk perception.
• Citi is positive on emerging markets, especially China and South Korea, for growth and AI exposure at reasonable valuations.

Why It Matters: It reveals key market drivers for 2026, impacting your investment strategy.