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Business & Finances

5 Things to Know About Stock Market Trends in 2024

Investing in the stock market can be a great way to build wealth – if you know what you’re doing. And that means paying attention to the latest news to learn the risk factors. You’ll get the best investor insights when you make staying engaged a priority. 

Read on to learn the five things you should know about stock market trends in 2024!

1. Expect a Strong Year

The good news heading into 2024 is that prospects are strong for a good investment year. With the Fed cutting rates to close out 2023, the market looks to have a strong performance. Some experts advise being cautious, however, as those rate cuts may not continue as aggressively. 

Continue to be methodical about stock trading and investments. Dollar-cost-averaging, for instance, is a measured approach to investing that isn’t reactionary to what the experts are saying. You’ll just budget to invest on a weekly basis. 

2. Diversifying Makes Sense

When it comes to stock tips, diversifying your investments tends to be a common one. And as you enter a year with interest rate shifts and recession concerns, it’s wise to go with a mix.

This means including a mix of bonds and stocks to offset the volatility potential. It may also mean turning to cash holdings. Look to amass holdings in different industries, too.

3. Consider the Election

Given that it’s an election year, the market may not perform as expected. After all, investors may be wondering how the president will shift policies that affect their bottom line. 

In general, election years can come with lower returns as people deal with uncertainty. The silver lining, however, is that the market tends to do better after the election has happened.

As an investment strategy during an election year, keep your eyes on long-term returns and consider talking with a financial advisor. View investor insights here to learn more!

4. Risky Assets Should Do Better

If you’re investing in smaller companies, or small cap funds, you may have experienced financial loss in 2023. But in 2024, the stock market should be broadening to a point where small and mid-cap funds perform better.

As a result, you may be able to capitalize on some growth with funds in these categories. Keep your eyes peeled for younger, smaller companies poised to make big gains. 

5. Look into AI

Artificial intelligence is one of the most dominant topics in any industry. And in the stock market, you can expect it to be a hot topic in 2024.

If you’re looking for investments that could be the most profitable in the next few years, AI could be the right choice. Stocks connected to robotics or AI software are especially appealing choices. 

Know the Latest Stock Market Trends

When you know the current and upcoming stock market trends, you can put yourself in the best financial position. Pay attention to interest rates and recession concerns as you adjust your portfolio. And look into small cap funds, AI stocks, and other assets that could have a strong year. 

Find more stock tips to power your investments. Check back soon for new articles!

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