US stocks are expected to post steady gains in an expanding economy, according to Morningstar. Spencer Platt/Getty Images; Bryan Erickson/Business Insider
Investors should prepare for another strong year as inflation and interest rates decline.
Morningstar believes stocks are fairly valued, although there are still many opportunities.
After four years of turmoil, Morningstar leaders are ready for a relatively normal year in the stock market. According to your analysis, you should keep your sights on five sectors in particular.
Although 2024 will still have a few surprises in store, the investment research firm’s strategists are confident that nothing will compare to the pandemic and its ensuing impacts. The health crisis took a catastrophic toll on people. It led to an unprecedented pause in the global economy, which had unintended consequences such as supply chain disruptions. They drove inflation to a decade high.
In 2024, investors can finally put the problems caused by the pandemic behind them, Dave Sekera said in a recent interview with Business Insider. Sekera is Morningstar’s senior U.S. market strategist. “This is the first year that I really believe we’re past all of this,” Sekera says of pandemic-related upheaval. “If you look at consumer behavior and spending patterns, they are pretty close to being back to normal.”
Wall Street hasn’t been worried about the number of virus cases for years. Instead, they worry about inflation, which skyrocketed during the pandemic, and interest rates, which rose as a result. Markets are also keeping a close eye on consumers and their spending after pandemic-era stimulus fades.