Wall Street's positive predictions for 2024 have investors taking action and driving up stock market stocks.
This more flexible policies anticipation from the Reserve resulted in increases for the S&P, which is now 2% away from a record, and for the Dow Jones, which broke a record, closing above 37,000.
Let’s take a look at experts’ diverse opinions.
Strategists are not very enthusiastic about these forecasts. They worry that this rise in stock values is a short-term reaction and that 2024 will come with economic challenges.
Sam Stovall, chief investment strategist for CFRA Research said the S&P will hit new all-time highs after its recent rally and then gain another 5%. But he expects it to retreat 5% soon after. He said: “The good news is that after the S&P 500 recovered all that was lost in the prior bear market, none of these subsequent declines became a new bear market.” “The bad news, however, is that this post-[all-time-high] advance might be very short-lived, since four times the market stumbled almost immediately after recovering its prior bear market loss,” he added.
Goldman Sachs', David Kostin raised his year-end S&P 500 target to 5,100 from his original 4,700 forecast he set in November. The new target represents an 8% advance from Friday's close.
John Stoltzfus, chief investment strategist at Oppenheimer Asset Management said S&P 500 shares may rise more than 10% to 5,200 next year. He says this is a transition year and expects profits and revenue to continue to rise. He says that even though markets do not rise in straight lines but patient investors should expect profits in the medium and long term.