Posted 12/26/2023, 11:16:18 AM
2023 Economy Defies Recession Predictions, But Outlook Remains Uncertain for 2024
- Analysts who predicted economic resilience in 2023 were largely proven right, with inflation falling, unemployment still low, and the S&P 500 up 24%
- Optimistic analysts like Tom Lee expect the bull market to continue into 2024, fueled by falling inflation and confident consumers
- More bearish analysts caution that the full economic impact of interest rate hikes is still unfolding, pointing to early signs of weakness
- The path of inflation and the Fed's ability to curb it without triggering a recession is central to both bullish and bearish outlooks
- Unloved sectors like manufacturing and small caps could rebound in 2024, but their continued weakness could signal broader economic troubles ahead