LOW - My Top 3 Stock Picks For 2024: Mid-Year Update
2024-06-23 00:26:07 ET
Summary
- Stock market in 2024 has rallied without major pullbacks, concentrating returns in a few companies, and lagging performance in other sectors.
- 10 companies alone in the market-weighted S&P 500 are responsible for 71% of the YTD returns.
- Two of my three Top Stock Picks for 2024 have beaten the market by a significant margin, helping my portfolio to deliver +19.4% YTD.
- As H2 is around the corner and valuations are outperforming the fundamentals, I am revising the outlook for my Top 2024 picks.
The stock market in 2024 has been rallying without any meaningful pullbacks, leaving in the back mirror any concerns about reigniting inflation, overheating economy, or decade-high interest rates impacting consumer sentiment.
All the major indices hit their all-time highs at some point this year; however, year-to-date returns have been concentrated in a handful of companies, without any signs of the rally broadening to other sectors of the economy, outside of the AI-centric narrative, demonstrated by the lagging performance of equal-weighted S&P 500 and Dow Jones:
- S&P 500: +15.3%
- S&P 500 (Equal-weight): +5.4%
- Dow Jones: +4.8%
- Nasdaq 100: +17.4%