Trader Predicts Continued Stock Market Gains in 2024 Despite Possible Spring Correction
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Professional trader John Salama predicts the stock market will continue rising overall in 2024 after a brief consolidation period, with the S&P 500 reaching 4,900 soon and 4,970 by mid-February before a mild correction in March.
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Salama believes "the trend is your friend" and sees ample additional upside for stocks this year, possibly nearing 5,200 on the S&P 500 by April before gains likely slow.
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The trader highlighted 20 attractive areas to invest now, spanning various indexes, sectors like tech and communications services, e-commerce, and companies like Meta, Alphabet, Microsoft, Netflix, Nvidia, and regional banks.
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Specific equity ideas include the XLK and XLC ETFs, Amazon, healthcare stocks, financials including Truist Financial, as well as continued caution around Tesla.
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Gains may be front-loaded in 2024, meaning stocks could peak and trade sideways after hitting those high levels later this year, per Salama's prediction.