Investors Optimistic for 2024 but Face Pitfalls if Expectations Aren't Met
• Investors have high hopes for 2024 - soft landing, cooling inflation, Fed rate cuts - raising stakes if expectations not met
• S&P 500 near highs, up 24% in 2022, leaving room for disappointment if outlooks don't materialize
• Key tests ahead - CPI data, bank earnings, Fed meeting - to validate economic and profit growth views
• Stocks tend to rise for months after initial Fed rate cut, but bar for positive surprises now higher
• Potential for digestion period near-term, but still positive longer-term outlook if pullbacks used as buying opportunities