Will stocks go back up in 2024?
For now at least, analysts are anticipating S&P 500 earnings growth will continue to accelerate in the first half of 2024. Analysts project S&P 500 earnings will grow 3.9% year-over-year in the first quarter and another 9% in the second quarter.
1. Positive returns -- but smaller than in 2023. I think that the overall stock market will deliver positive returns in 2024. However, I expect those returns to be somewhat smaller than they were last year.
S&P 500 could hit 6,500 by end-2025, says Capital Economics.
Key Takeaways. Potential economic obstacles in 2024 could delay the start of a sustained bull market, but investors can still find opportunities. Consider staying cautious on U.S. stocks while shifting to bonds for potential income and capital gains.
Key takeaways. The national average rate for savings accounts will be 0.3 percent by the end of 2024, McBride forecasts, while predicting an average of 0.35 percent for money market accounts.
2024: A Good Year For Investors. After nearly 3 years and a 50% peak-to-trough hit in long-term Treasury total returns, normalization of interest rates argues for a meaningful rebound for fixed income. The substantial gains made since mid-October are likely part of a trend that is not yet over.
Against this backdrop, here's why high-quality AI-powered stocks such as Nvidia (NVDA 3.73%), Super Micro Computer (SMCI 4.57%), Snowflake (SNOW -0.40%), Palantir Technologies (PLTR -1.00%), and UiPath (PATH -0.42%) can prove to be smart buys in 2024.
The S&P 500 still has 30% upside between now and the end of 2025, according to Capital Economics. "Our end-2025 forecast of 6,500 for the index is premised on its valuation reaching a similar level to its peak during the dot com mania," Capital Economics said.
| Stock | Forward price-to-earnings ratio (P/E) |
|---|---|
| Costco Wholesale Corp. (COST) | 40.0 |
| CrowdStrike Holdings Inc. (CRWD) | 73.8 |
| Enphase Energy Inc. (ENPH) | 25.3 |
| Microsoft Corp. (MSFT) | 30.0 |
Returns in the S&P 500 over the coming decade are more likely to be in the 3%-6% range, as multiples and margins are unlikely to expand, leaving sales growth, buybacks, and dividends as the main drivers of appreciation.
Should I pull my money out of the stock market now?
Once you cash out a stock that's dropped in price, you move from a paper loss to an actual loss. Cash doesn't grow in value; in fact, inflation erodes its purchasing power over time. Cashing out after the market tanks means that you bought high and are selling low—the world's worst investment strategy.
| Company | Ticker | Market value gain ($ bil)** |
|---|---|---|
| Amazon.com | (AMZN) | 247.8 |
| Alphabet | (GOOGL) | 187.4 |
| Apple | (AAPL) | 106.5 |
| Exxon Mobil * | (XOM) | 104.5 |
The duration of bear markets can vary, but on average, they last approximately 289 days, equivalent to around nine and a half months. It's important to note that there's no way to predict the timing of a bear market with complete certainty, and history shows that the average bear market length can vary significantly.
- Pfizer Inc. (NYSE:PFE) ...
- Johnson & Johnson (NYSE:JNJ) Number of Hedge Fund Investors In Q4 2023: 81. ...
- Elevance Health, Inc. ...
- Walmart Inc. ...
- Exxon Mobil Corporation (NYSE:XOM) ...
- Intel Corporation (NASDAQ:INTC) ...
- Union Pacific Corporation (NYSE:UNP) ...
- Danaher Corporation (NYSE:DHR)
- Technology. Communication. services. Consumer. discretionary. Industrials.
- Health care. Real estate. Materials. Energy.
- Financials. Utilities. Consumer. staples.
Growth in the United States is projected at 2.1% in 2024 and 1.7% in 2025, helped by consumers continuing to spend savings built up during the COVID-19 pandemic and easier financial conditions.
There are growing expectations that equal-weighted funds will shine in 2024. After just a handful of mega-cap tech stocks drove returns of more than 20% in 2023, strategists say that in 2024, an ultraconcentrated rally could finally broaden to include the rest of the market and not just the “Magnificent Seven.”
Next Big Thing in Investing: Artificial Intelligence
Right now it seems that artificial intelligence (AI) is driving that bus and will be for the foreseeable future. AI has the potential to change how we do everything — from the way we shop to how businesses are run.
- Voya Index Solution 2025 Port.
- Fidelity Simplicity RMD 2025 Fund.
- Principal LifeTime 2025 Fund.
- American Funds 2025 Trgt Date Retire Fd.
- MassMutual RetireSMART by JPMorgan2025Fd.
- 1290 Retirement 2025 Fund.
- Fidelity Sustainable Target Date 2025 Fd.
Wayfair Inc. (NYSE:W), Match Group, Inc. (NASDAQ:MTCH), and Palantir Technologies Inc. (NYSE:PLTR) are some of the stocks that will double in 2024, besides StoneCo Ltd.
Where to invest February 2024?
- Nvidia.
- Microsoft (NASDAQ:MSFT)
- Apple (NASDAQ:AAPL)
- Amazon (NASDAQ:AMZN)
- Tesla (NASDAQ:TSLA)
- Meta Platforms (NASDAQ:META)
- Alphabet (NASDAQ:GOOGL)
- Advanced Micro Devices (NASDAQ:AMD)
| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | Brightcom Group | 18.05 |
| 2. | Rama Steel Tubes | 40.35 |
| 3. | Easy Trip Plann. | 49.05 |
| 4. | Radhika Jeweltec | 65.35 |
"Some traders predict a flat or down market in the first half of 2024 due to high inflation, recession fears and rate hikes from the Fed. However, others foresee a bull market continuing, citing potential Fed rate cuts, earnings growth and historical trends around election years."
It typically takes five months to reach the “bottom” of a correction. However, once the market starts to turn, it can recover quickly. The average recovery time for a correction is just four months! That's why investors with truly diversified portfolios may consider staying investing for the long-term.
Here's the Growth Stock to Buy Right Now. The Nasdaq-100 technology index plunged into a bear market in 2022 on the back of a 33% loss for the year.
