S&P 500 Rebounds Over 20% in 2023 After Rough 2022, Historic Gains Expected in 2024 As Rates Fall
-
The S&P 500 is up 22.8% in 2023, bouncing back after a rough 2022. Historically after a down year the index tends to rally the next year.
-
The stock market crash in 2022 was largely driven by high inflation and aggressive Fed interest rate hikes. Rates are now expected to fall in 2024, fueling further stock gains.
-
In the 9 historical instances of the S&P 500 rebounding after a down year, the average gain the next year was 15.1%. This bodes well for 2024.
-
Lower interest rates in 2024 would benefit stocks like Redfin and AI-driven companies such as Nvidia, Microsoft, Palo Alto Networks.
-
Berkshire Hathaway is a safer, defensive stock play if investing in the broader market in 2024. Its track record of doubling the S&P 500's annual returns suggests continued outperformance.