VTV - Opportunities at the bottom and top of the S&P 500 still lay ahead in 2024 - analyst

2023-11-29 13:55:54 ET

Analysts also lowered MSCI Emerging Markets Index ( EEM ) 2024 price to unfavorable.

Analyst Austin Pickle pointed out that the S&P 500 Index ( SPX ) came down from its high of 4607 on July 27 to a low of 4104 on Oct. 27.

He wrote that “volatility like what we have just experienced can be unsettling for investors and it can lead to emotional investment decisions that are inconsistent with account goals.”

The Fed’s tightening cycle will continue to put pressure on equities and prices, until “a path to an economic and earnings recovery becomes clear,” he added.

As stocks approach the bottom end of the range, Wells Fargo analysts recommended investors to continue betting on U.S. large cap equities.

But as stocks approach the top end of their range, he concluded, “we would suggest trimming over-allocations to areas rated unfavorable, such as U.S. small-cap equities, emerging markets, the real estate sector, and the consumer discretionary sector.”

Largest cap ETFs: Vanguard Total Stock Market ETF ( VTI ), Vanguard S&P 500 ETF ( VOO ), SPY SPDR S&P 500 ETF Trust ( SPY ), Vanguard Value ETF ( VTV ), Invesco QQQ Trust ( QQQ ).

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