Corporate earnings continue to improve and forward profit estimates point to improving economic activity. We think stock and bond prices will move higher through 2024. Based on the last three months of inflation data, it appears that the Federal Reserve is finished raising interest rates. The bond market has acted accordingly, and bond prices have risen while yields have fallen.
Money is flowing back into growth sectors such as technology and biotech. We are seeing promising signs that small and mid-sized companies are attracting the attention of institutional investors. This is extremely constructive and healthy for the stock market. As more companies participate in the up move it enhances the probability of a longer and sustainable rally. Going forward, as bond yields stabilize, we believe stock prices will gradually trend higher throughout 2024.
Please keep in mind there are always countless things to worry about when investing your hard-earned money. Often, the biggest risk over time may be not investing at all. We are here to provide advice and guidance to enhance your financial future. We wish you and your family a Merry Christmas and a Happy New Year.
The views expressed are not necessarily the opinion of Cadaret Grant, and should not be construed directly or indirectly, as an offer to buy or sell any securities mentioned herein. Investing is subject to risks including loss of principal invested. Past performance is not a guarantee of future results. No strategy can assure a profit nor protect against loss. Please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice.