How much will stocks go up in 2024?
Analysts expect overall S&P 500 earnings to rise 9.5% in 2024 after increasing around 4% in 2023, LSEG data showed. But valuations have risen along with stock prices.
For now at least, analysts are anticipating S&P 500 earnings growth will continue to accelerate in the first half of 2024. Analysts project S&P 500 earnings will grow 3.9% year-over-year in the first quarter and another 9% in the second quarter.
The S&P 500 still has 30% upside between now and the end of 2025, according to Capital Economics. "Our end-2025 forecast of 6,500 for the index is premised on its valuation reaching a similar level to its peak during the dot com mania," Capital Economics said.
Economic growth actually accelerated above its 10-year average in 2023. That resilience, coupled with a fascination about artificial intelligence (AI), changed investors' collective mood. The S&P 500 soared throughout the year and finally reached a new high in January 2024, making the new bull market official.
- High-yield savings accounts.
- Certificates of deposit (CDs)
- Bonds.
- Money market funds.
- Mutual funds.
- Index Funds.
- Exchange-traded funds.
- Stocks.
This skepticism is just one reason we think the bull market will march on in 2024, delivering a good-to-great year for global stocks.
S.No. | Company | Industry/Sector |
---|---|---|
1. | Tata Consultancy Services Ltd | IT - Software |
2. | Infosys Ltd | IT - Software |
3. | Hindustan Unilever Ltd | FMCG |
4. | Reliance Industries Ltd | Refineries |
The estimates from strategists put the median target for the S&P 500 at 5,200 by the end of 2024, implying a decline of less than 1% from Friday's level, according to MarketWatch calculations. Heading into 2024, the median target was around 5,000 (see table below).
The updated Dow Jones price prediction for the next 5 years is for the index to trade around 45,000 points. Long Forecast predicts Dow Jones to trade at 39071 points in the first month of 2024 and and advance up to 48,000 points by the end of the year.
Returns in the S&P 500 over the coming decade are more likely to be in the 3%-6% range, as multiples and margins are unlikely to expand, leaving sales growth, buybacks, and dividends as the main drivers of appreciation.
Will there ever be a bull market again?
The bull market is already well underway
Generally speaking, the best way to be sure about a new bull market is to look for two milestones. First, the market should rise at least 20% from its low. The S&P 500 hit its lowest point on Oct. 12, 2022.
How long do bull markets last? A bull market can last more than a decade or a few months. Stocks are in a bull market more often than not. The previous bull market lasted less than two years, starting in March 2020 and ending in January 2022.
- SoundHound AI and Sweetgreen are up 174% and 116% so far in 2024.
- SoundHouse AI is seeing its platform for conversational intelligence explode in popularity.
- Sweetgreen has quadrupled over the past year, but it's still a broken IPO with potential to harvest.
Some of the best stocks to invest in 2024 for beginners include Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Mastercard Incorporated (NYSE:MA). For this list, we used a stock screener and selected stable companies with high single digit or low-teens revenue growth.
U.S. Treasury Bills, Notes and Bonds
Historically, the U.S. has always paid its debts, which helps to ensure that Treasurys are the lowest-risk investments you can own. There are a wide variety of maturities available. Treasury bills, also referred to T-bills, have maturities of four, eight, 13, 26 and 52 weeks.
These charts of bear and bull markets in the S&P 500 since 1932 illustrate this well—there have 12 bear markets compared to 14 bull markets, but the duration of the bear markets is much, much shorter: The bear markets are just 25 months (around 2 years) long in average, compared to an average length of 59 months ( ...
The duration of bear markets can vary, but on average, they last approximately 289 days, equivalent to around nine and a half months. It's important to note that there's no way to predict the timing of a bear market with complete certainty, and history shows that the average bear market length can vary significantly.
Bear markets tend to be short-lived.
The average length of a bear market is 289 days, or about 9.6 months. That's significantly shorter than the average length of a bull market, which is 965 days or 2.6 years. Every 3.5 years: That's the long-term average frequency between bear markets.
- Alphabet.
- Amazon.com.
- Apple.
- Meta Platforms.
- Microsoft.
- Nvidia.
- Tesla.
STOCK | ACTION | TRADE PRICE |
---|---|---|
INDHOTEL | BUY | 569 |
NATCOPHARM | BUY | 958 |
MOTHERSON | BUY | 117 |
BSOFT | BUY | 745 |
What stocks to buy in February 2024?
- Coinbase Global.
- Palantir Technologies.
- Applovin.
- Super Micro Computer.
- XPO.
Month | Minimum | Maximum |
---|---|---|
January | 33,010 | 37,224 |
February | 32,845 | 37,039 |
March | 31,203 | 35,187 |
April | 32,631 | 36,797 |
If you have individual stocks that appear to be underperforming (consistently), it may be time to cut your losses before those losses stack up even higher. However, if you believe the market will recover (which it usually does), you may decide to hold onto your stocks and ride out the waves.
Investors are likely drawn to the stock market now as it continues to hit fresh highs. After the market tanked in 2022, it came roaring back last year. The S&P 500 soared 24% in 2023, and it started to hit fresh, all-time highs throughout the month of January this year.
Capital Economics chief market economist John Higgins predicts the S&P 500 can hit 6,500 by the end of 2025. This outlook is more dependent on the current AI-fueled bubble growing. For now, he maintains the bubble-like trade in the market can bring the benchmark average to 6,500 by the end of 2025.
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