Sector rotation 2024: Big Tech stocks lose, boring stocks win - CNBC expert Jim Cramer explains

Sector rotation 2024: Big Tech stocks lose, boring stocks win - CNBC expert Jim Cramer explains

According to a report by www.finanzen.net, TV stock market expert Jim Cramer expects a big change in the US stock market in 2024. He predicts a sector rotation away from the current stock market favorites, especially in the area of ​​Big Tech stocks, towards neglected, boring stocks.

According to Cramer, companies in the food, pharmaceutical and financial sectors are likely to be in higher demand because they are valued too cheaply compared to the previous winners in the market. This shift could be “brutal” for some stocks, but it is expected to be temporary.

The monetary policy of the US Federal Reserve is expected to continue to have a significant influence on market movements in 2024. In connection with the expected sector rotation, Cramer says that more and more investors believe that the Fed will cut interest rates soon, which in turn could increase the attractiveness of dividend stocks.

These expected changes have potentially far-reaching impacts on the market, consumers and the industry. A shift from tech stocks to dividend stocks could impact the performance of various sectors as investors restructure their portfolios. In addition, the valuations and market capitalizations of companies in the affected sectors could change significantly, which in turn could affect their business activities, investments and employee structures.

The Federal Reserve's expected influence on market conditions is also likely to influence the strategies of investors and financial professionals, as they may increase their efforts to anticipate the Fed's decisions. This could lead to increased volatility in financial markets as expectations regarding monetary policy fluctuate.

Overall, it is important that investors and companies prepare for these upcoming changes and adapt their investment strategies accordingly. The importance of making informed, data-driven decisions and considering macroeconomic factors such as monetary policy and industry trends are critical to success in a dynamic market environment.