Stock Gains Expected in 2024, But Slowing From 2023 Highs; Small-Caps Seen as Big Winners
• Predicts overall stock market will have positive returns in 2024, but smaller than the strong gains in 2023 due to historical trends and analyst predictions.
• Forecasts a potential stock market surge in Q4 of 2024 if the Fed cuts interest rates as expected in the second half of the year.
• Believes the "Magnificent Seven" big tech stocks that led the market in 2023 won't be the leaders in 2024 as gains broaden across more companies.
• Predicts small-cap stocks will be big winners in 2024 due to attractive valuations and benefiting more from potential rate cuts.
• Recommends Vanguard's small-cap value and small-cap ETFs as a way to benefit from expectation of outperformance by small-caps.