Market strategist on where stocks are likely headed next | CNN Business (2024)

FAQs

Where is the stock market headed 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.

Bull Market

A financial market of a group of securities in which prices are rising or are expected to rise. The term "bull market" is most often used to refer to the stock market but can be applied to anything that is traded, such as bonds, currencies and commodities.

Bull markets and long-term uptrends often unfold gradually over many years, reflecting (in part) broader, slow-moving economic and business cycles.

A popular method for modeling and predicting the stock market is technical analysis, which is a method based on historical data from the market, primarily price and volume.

The Basics: Supply and Demand

Supply is the number of shares people want to sell, and demand is the number of shares people want to purchase. If there is a greater number of buyers than sellers (more demand), the buyers bid up the prices of the stocks to entice sellers to sell more.

Looking ahead to second quarter reports, analysts are calling for: S&P 500 earnings to increase 9.3% compared to a year ago. S&P 500 earnings growth to accelerate in the second half of the year. Full-year S&P 500 earnings growth of 11.4% in 2024.

Some of the common indicators that predict stock prices include Moving Averages, Relative Strength Index (RSI), Bollinger Bands, and MACD (Moving Average Convergence Divergence). These indicators help traders and investors gauge trends, momentum, and potential reversal points in stock prices.

Utility sector stocks are generally considered defensive investments and are often a preferred flight-to-safety play during economic downturns. Utility companies have stable and predictable demand and cash flows, as well as limited competition.

What are experts saying about the stock market? ›

While there could be a growth slowdown in the first half of 2024, experts believe growth should resume in the second half of the year. Americans faced many financial challenges this year, from persistent inflation to increasingly expensive debt.

In summary, mutual funds provide diversification, professional management, and tax benefits, making them a better choice for many investors.

It's the maximum allowable increase or decrease in a company's stock price. The price range for equities might range from 2% to 20%. The stock exchange determines this range after reviewing the share's past price behaviour. The daily price range also considers the previous day's closing price.

In a rising market, a concentrated portfolio might increase your chances of losing money. When markets are really high, you need to diversify. In diversification, you need to include stocks of different market capitalization. You can invest in large-cap stocks which tend to be stable during such volatility.

If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall. Understanding supply and demand is easy.

Identify companies with strong fundamentals

To identify promising companies, look for those with strong fundamentals, like increasing revenue, growing profits and positive cash flow. Those indicators suggest that they are doing well financially, and these companies tend to be more likely to break out.

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A. Moving average, linear regression, KNN (k-nearest neighbor), Auto ARIMA, and LSTM (Long Short Term Memory) are some of the most common Deep Learning algorithms used to predict stock prices.

The Zacks Ultimate program gives you Zacks Premium tools plus ALL the buys and sells from ALL of Zacks' private portfolios, including: 6 long-term investor services focusing on dividends, value stocks and ETFs.

What is one tip for how to select stocks to buy? ›

Look for strong sectors and industry groups if you want to go long—that is, buy a stock with the expectation that its price will rise—and weak ones if you want to go short—which means borrowing and selling a stock whose price you think is going to fall, and then buying it back later at a lower price should it actually ...

If demand for a limited number of shares outpaces the supply, then the stock price normally rises. And if the supply is greater than demand, the stock price typically falls.

No one, including the company that issued the stock, pockets the money from your declining stock price. The money reflected by changes in stock prices isn't tallied and given to some investor. The changes in price are simply an independent by-product of supply and demand and corresponding investor transactions.

The S&P 500 soared throughout the year and finally reached a new high in January 2024, making the new bull market official. The onset of a new bull market has historically been a very reliable stock market indicator.

Here's its new S&P 500 target. The rally in May has also forced one of Wall Street's most prominent bears to turn bullish and bump up his prediction of where equities will go next. Mike Wilson, Morgan Stanley's chief U.S. equity strategist, said he sees the S&P 500 climbing to 5,400 by the second quarter of 2025.

Highlights: 5.2% 10-year expected nominal return for U.S. large-cap equities; 9.9% for European equities; 9.1% for emerging-markets equities; 5.0% for U.S. aggregate bonds (as of September 2023). All return assumptions are nominal (non-inflation-adjusted).

Between January and March 2024, 69% of advisors expected markets to rise over the coming year while 17% expected them to fall. This represents a slight increase in sentiment over the previous quarter. This overall outlook is similar to where it was in the third quarter of 2023.