Is A Bumpy Landing On The Way For Stocks In 2024?

If there’s one thing plenty of us have learned, it’s that you can never predict what is going to happen in the world of finance. Just take the last few years. Events entirely out of people’s control have led to some of the highest rates of inflation people have seen and interest rates that are through the roof.

Still, that hasn’t stopped people from trying to look ahead to see what could be in store on the stock market in the next 12 months. Is a bumpy landing on the way for stocks in 2024? It might be, but that doesn’t mean anything is set in stone just yet.

Things have been looking up for the market in 2023

Investors haven’t dedicated too much for the last couple of years as things have been pretty wishy-washy. However, things took another turn in 2022 when the Federal Reserve introduced an interest rate hiking regime that saw inflation get out of control and investors sell off stocks faster than they could manage. The slowing of inflation has allowed things to calm down a little as the Fed has been trying to manifest a soft landing for the end of the year. Of course, this is all in aid of trying to avoid a recession.

There could be a bumpy landing on the horizon

The Fed is thought to cut interest rates again in 2024, which could mean a strong economy and stock market are on the way, but not everyone is so convinced that good things are on the horizon. In fact, the chief global market strategist at Invesco, Kristina Hooper, thinks there is a “bumpy landing” on the way in terms of finances. A soft landing means there is no damage to the stock market. However, Hooper believes there will be “some damage” on the way after everything that has happened to interest rates and inflation in the last few years.

2024 could see the stock market bounce upward again

There isn’t a guaranteed recession on the way, and it’s something that the Fed has been trying to stop for months, but will it work? Well, if some predictions are correct, the stock market could be set to bounce upward again in 2024. According to Jay Hatfield, Infrastructure Capital Advisors’ CEO, he thinks that a decline in rates across the world could be “very bullish for stocks.” While the current economy isn’t the picture of health, Hatfield thinks that lower interest rates could be the thing we need to help receive financing and do global business again. This, teamed with the boom in AI, could see the markets start to bounce upward again if the trend continues.

Next year might not be the time to make big investment changes

Just because things might be looking good - or they might not - doesn’t mean that now is the time to start thinking about big changes in your investments. While making big changes might not be the way to kick off the new year, rebalancing our portfolio and looking at where you can trim some cash investments could be the best way to deal with the stock market at the start of 2024. If you want to make new investments, Hooper says that it’s a good idea to look at fast-growing companies in the US to get the most of your money.

Is a bumpy landing on the way for stocks in 2024? It could be, but as we have learned in recent years, nothing is guaranteed when it comes to the stock market. Instead, it’s all about watching closely to see where the money is shifting.