Given the fair winds of lower interest rates and a soft landing for the economy next year, the S&P 500 index could return 11% in 2024, analysts predict.
That’s not a bad shout, given that the historical average annual return for the index is around that mark.
In 2023 so far, the S&P 500 is up around 18%. Over the same period, the SPDR S&P 500 ETF Trust (SPY), an exchange-traded product that tracks the index, is up 19%.
But if interest rates do come down, is it better to invest somewhere that gains more exposure to lower rates? DataTrek co-founder Nicholas Colas suggested the Russell 3,000 index of small-cap stocks.
“The Russell is statistically oversold versus the S&P 500 just now,” Colas said. “For investors confident in continued U.S. economic growth ...