2023 might be one of the most unexpected years of all time, certainly as the markets and economy are concerned. It seemed like everyone was calling for a recession. It never came. Most unexpected might be the magnitude of the stock market rally, which looks to be ending the year with a punctuation mark!
As we head into 2024, the major themes I’m watching include:
* Potential for Fed rate cuts
* Is the economy truly slowing based on persistently high borrowing costs and increasing household debt levels?
* Stock market may see high single-digit gains; S&P 500 price target 5,090 (+7%-8% higher) according to Fact Set
* Bond price rally as yields continue to fall
* Housing market and affordability likely to remain challenging
* Ongoing geopolitical conflict and how much money we’re sending abroad
* Election year and nasty, divisive politics
Listen to this episode to hear my thoughts on these factors and more.
