Citi’s Levkovich warns of volatility on Fed, tax hike

NEW YORK: Citigroup Inc’s Tobias Levkovich warned that investors should be bracing for more volatility as Federal Reserve tapering, the possibility of higher taxes, margin pressures and persistent inflation become forces “that the bond market has to respond to.”

“We’re a bit more cautious,” Citigroup’s chief US equity strategist said in an interview on Bloomberg TV, adding that these four potential problems “could cascade onto each other around September” as valuation is extended.