Financial expert predicts: S&P 500 will reach new highs in 2024

Financial expert predicts: S&P 500 will reach new highs in 2024

According to a report by www.boerse-online.de, BMO chief investment strategist Brian Belski is confident the S&P 500 could reach new highs in 2024. He predicts the index will rise to 5,100 points by the end of 2024, which would be well above the previous peak of 4,796 points in January 2022. Belski argues that 2024 will be the second year of at least a three- to five-year process in which U.S. stocks will exhibit normal performance based on normal economic and earnings performance, valuations and bond yields. He is also optimistic that even in the event of a recession in the first half of the year, stocks will do well, as the continued strength of the U.S. labor market is a positive sign for him.

Belski's forecast could have a significant impact on the stock market and investors. A rise in the S&P 500 to 5,100 points would signal a strong upward movement and increase investor confidence. This could lead to investors investing more in stocks and strengthening the capital markets. However, there could also be concerns about possible overheating of the market, particularly if the fundamental economic situation does not support such an increase.

Belski's recommendation to diversify and pursue active investment strategies signals that performance within sectors may shift. Investors may be encouraged to look for new opportunities in smaller companies to continue generating returns.

Overall, Belski's forecast gives hope for an optimistic 2024 for the stock market, but investors should carefully weigh the associated risks and opportunities.