March 4, 2024

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“Stocks will reach decade peak in 2024”

“Stocks will reach decade peak in 2024”

In ten statements, Danny Ruiz, stock market expert at Trends, looks ahead to the stock market year 2024. Today we bring you the first statement: Stocks will reach the peak of the decade next year. “It is no longer possible to get rich while sleeping.”

Stocks will reach their highest level of the decade in 2024. Great new opportunities lie in other asset classes such as commodities and precious metals. Bonds may also make up a larger portion of the portfolio. These are some of the 10 New Year's predictions for the stock market that Trends Beleggen's Danny Ruiz will explain this weekend on Trends Talk.

We've already divided Danny Ruggs' predictions for you into ten parts, which we'll be bringing to you every day this week and next.

Today: Stocks reach decade peak in 2024

(Read more below the video)

At a perfect price

2023 has been a good year for stock markets. Low interest rates and the hype around AI will only send stock markets soaring to new highs in 2024.

But the historic turnaround will come soon, predicts Danny Ruiz: “Wall Street has been on a bullish stock market trend since 2009. This was in the wake of the financial crisis, which severely damaged the stock markets. We started with very low valuations, but now we are at peak valuations.” Maximum.

“The current environment is much more difficult in terms of interest rates and inflation than in the past 10 years. Corporate profits will struggle to meet high expectations. So we have ended up in a peak situation and I fear this will reverse in 2024.”

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Get rich while you sleep

Stock prices have risen faster than corporate profits in recent years. An example of this is Apple. The stock market value now stands at $3 trillion, which is 30 times expected earnings. But despite being an iconic, healthy, and strong company, Apple had no revenue growth last year. The share rose by about 50 percent at the same time. If the company's results do not meet these very high expectations, a major correction is likely.

The patient investor who keeps buying and holding will have to change this strategy in 2024. It is no longer possible to get rich while sleeping. Danny Ruiz: “That period will soon be over. Everyone who has bought a tracker on the MSCI World Index in recent years has had fantastic returns, including big tech companies Apple, Microsoft and Amazon. But this is no longer a prediction of what the return will be like in the coming years. This will be Much less for those who continue the buy-and-hold strategy.”

injury time

Current high prices should be used in a timely manner to reduce positions. The peak is approaching and it is important as an investor to get out of it at the right time: “In football terms: we have already started stoppage time. We do not know how many more minutes will be added. But the long-term investor must now take steps towards reducing equity positions.

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