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Stocks’ runup likely won’t persist
Falling interest rates are generally a boon for the stock market, advisors said. Among the reasons: Businesses can borrow money more cheaply and are more likely to make big investments in their companies as a result.
However, 2024 is unlikely to see a repeat of stocks’ stellar performance from last year, advisors said.
The S&P 500 U.S. stock index rose 24% in 2023 following a year-end rally. That surge was partly forward-looking, reflecting investors’ expectations for lower interest rates in 2024.
“The stock market is the great anticipation machine,” said Charlie Fitzgerald III, a certified financial planner based in Orlando, Florida.
“If anyone was trying to time the market, they may have missed it already,” added Fitzgerald, a founding member of Moisand Fitzgerald Tamayo. “Because it’s what happened in the fourth quarter.”
Of course, that doesn’t mean all market growth is…
