In ten statements, Trends stock market expert Danny Reweghs looks ahead to the stock market year 2024. Today we bring you the first statement: shares will reach their peak of the decade next year. ‘Becoming rich while sleeping will no longer be possible’.
Stocks will hit their decade high in 2024. New, great opportunities lie in other asset classes such as commodities and precious metals. Bonds may also form a larger part of the portfolio. These are some of the ten prospects for the new stock market year that Danny Reweghs from Trends Beleggen will explain this weekend in Trends Talk.
We have already divided Danny Reweghs’ forecasts into ten parts for you, which we will offer you every day this and next week.
Today: Stocks reach decade peak in 2024
(read more below the video)
Priced for perfection
2023 was a good year for the stock markets. Falling interest rates and the hype around AI will only take the stock markets to new record highs in 2024.
But a historic turnaround will soon follow, predicts Danny Reweghs: “Wall Street has been in an upward stock market trend since 2009. This is in the aftermath of the financial crisis, which severely damaged the stock markets. We started with very low valuations, but we are now at extreme peak valuations.”
“The current environment is much more difficult in terms of interest rates and inflation than the past ten years. Corporate earnings will struggle to meet high expectations. This is how we ended up in a peak situation and I fear that this will reverse in 2024.”
Becoming rich while sleeping
Stock prices have risen faster than corporate profits in recent years. An example is Apple. The stock market value now amounts to 3 trillion dollars, a valuation of 30 times expected profits. But even though it is an iconic, healthy and strong company, Apple achieved no revenue growth last year. The share rose almost 50 percent at the same time. If company results do not meet these extremely high expectations, a major correction is likely.
The patient investor who maintains buy-and-hold will have to change that strategy in 2024. It is no longer possible to become rich while sleeping. Danny Reweghs: “That period will soon be behind us. Anyone who bought a tracker on the MSCI World Index in recent years has achieved fantastic returns, including the major technology companies Apple, Microsoft and Amazon. But that is no longer a prediction of what the return will be in the coming years. That will be a lot lower for those who continue the buy-and-hold strategy.”
Injury time
The current rising prices must be used in a timely manner to reduce positions. The peak is approaching and as an investor it is important to get out of it just in time: “To put it in football terms: we have now really started injury time. We don’t know how many more minutes will be added. But the long-term investor must now take steps towards reducing equity positions.”
In Trends Talk with Jan De Meulemeester, stock market expert Danny Reweghs looks ahead to the new stock market year in 10 statements. Every day we serve you 1 of 10 predictions and explain how you should position yourself as an investor in 2024. You can watch the full broadcast of Trends Talk this weekend from Saturday morning at 11 am on Kanaal Z.
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2023-12-27 18:56:00
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