RBC: Lower Returns Ahead Despite Higher 2024 S&P 500 Target
• RBC Capital raised its 2024 S&P 500 target, but the new target implies lower returns than previously expected
• The shifted outlook is based on fading enthusiasm after the initial reaction to the Fed's December policy update
• Sentiment indicators suggest a flat market over the next 3 months and muted returns over the next year
• The question is whether markets are trying to anticipate, react to, or impose outcomes on Fed policy
• Lower rates are positive for stocks, but the initial rally may have been buyers anticipating rate cuts that are now priced in