Stocks Rally in New Year Despite 2022 Headwinds; Key Sectors to Watch in 2024 Include AI, Biotech, Small Caps
• As 2022 closed, investors were skeptical about stocks due to high inflation, war, banking issues, and poor tech stock performance, yet stocks rallied in 2023.
• Equities tend to move higher over the long run, and seasonality shows stocks often surge from early summer through year-end in the fourth year of a presidential cycle.
• 3 areas to watch in 2024 semiconductors/AI due to massive growth forecasts, biotech/healthcare due to more M&A, drug breakthroughs and attractive valuations, and small caps given recent bullish momentum.
• ChatGPT became the fastest app ever to reach 1 million users, showing the immense potential of AI - Nvidia is a top stock that could benefit.
• After a long drawdown, the Russell 2000 Index went from 52-week low to high in under 50 days, signalling returning momentum.