Watch the economy in 2024.
A question likely to be answered in 2024 is whether U.S. central bankers have achieved the rare success of bringing down inflation without pushing the economy into a recession. The corollary to that question is whether they can stop hiking rates. Eleven increases, starting in the spring of 2022, have pushed the Fed’s benchmark rate from near zero to a target range of 5.25% to 5.50%.
Another hike wouldn’t be a surprise, especially given the most recent reading on gross domestic product (GDP) growth that showed the economy expanding at the shockingly high annualized rate of 4.9% in the third quarter, buoyed by high-spending consumers. Although consumers, the backbone of the U.S. economy, are expected to remain resilient in a weakening but still strong job market, it’s worth noting that credit card delinquencies have been rising, albeit only back to pre-pandemic levels for now. Many forecasters anticipate an economic slowdown in 2024, if not outright recession, average GDP growth of 2.4% for 2023, slowing to 1.6% on average in 2024.
Stock picking of the month.
What will happen to the stock market in 2024?
Analysts project 11.5% earnings growth and 5.5% revenue growth for S&P 500 companies in 2024. Fortunately, analysts see positive earnings and revenue growth for all eleven market sectors this year.
3 Banking Predictions for 2024
- Savings accounts should continue to pay generously, but interest rates might fall.
- Short-term CDs may be a better choice than long-term CDs.
- If you want a longer-term CD, it’s likely best to act sooner rather than later.
Mutual fund and ETF investing tips can freshen your portfolio
- This ETF’s strategy has been working, and the numbers point to continued success. A combination of low price-to-earnings valuation and high expected growth rates can set up good performance over the long term.
The Investment (financial instruments) that are presented do NOT constitute advice or investment guides. They are selected according to their development and behavior in a time interval of 5 years.
