Analysis and Insights: Fundstrat’s Mark Newton Shares Expectations for 2024 Stock Market

Stocks in 2024: A Year of Contrasts and Opportunities

As we dive into the new year, the stock market is already showing signs of a different trajectory compared to last year. Despite some defensive tones in the early days of 2024, Wall Street strategist Mark Newton is optimistic about the potential for investors this year.

Newton, the Fundstrat managing director and global head of technical strategy, believes that 2024 has started off unlike many other years. He notes that the former leaders of the past year are now lagging behind, setting the stage for new opportunities. He predicts a 10% upside by the end of the year, with the S&P 500 reaching the 5,175 level.

While 2023 ended on a high note for returns, the beginning of 2024 was clouded by recession fears and a hawkish Federal Reserve. However, Newton remains positive about the prospects for investors, pointing out that healthcare is currently the leading sector, with defensive sectors like utilities and consumer staples also performing well.

Despite potential headwinds in the first quarter, including concerns about inflation, two wars, and the upcoming election, Newton sees opportunities for investors. He anticipates some choppiness in the market from February to March but believes that any declines could present buying opportunities.

Looking ahead, Newton favors the information technology sector, along with industrials and energy. He specifically mentions Boeing and Apple as potential opportunities for investors, noting that bad news surrounding these companies may have created buying opportunities.

Overall, 2024 is shaping up to be a year of contrasts and opportunities in the stock market. With careful analysis and a strong stomach for volatility, investors may find success in navigating the changing landscape of the market.