Consumer Debt and Uncertainty Cloud 2024 Stock Market Outlook
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Consumer spending has fueled stock market gains but high debt levels may cause consumers to pull back spending in 2024, negatively impacting business earnings.
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Government policy and Federal Reserve actions are unpredictable "X factors" that could positively or negatively impact markets in 2024.
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Global conflicts like the war in Ukraine and efforts to undermine the US dollar could roil markets if they escalate in 2024.
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High interest rates make guaranteed returns in savings accounts more attractive, potentially prompting investors to shift money out of stocks.
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If enough investors move money out of the stock market due to higher rates, it would drive stock prices down overall.