Will stocks hit new all time highs in 2024?
The S&P 500 reached its most recent all-time high of 4,818.62 on January 3, 2023. At the end of August 2023, the S&P 500 is down about 17% from its all-time high.
There are a number of factors that could affect whether or not stocks hit new all-time highs in 2024. Some of these factors include:
The economic outlook: The US economy is currently experiencing a slowdown. If the economy continues to slow down, or if it enters a recession, this could negatively impact stock prices.
Inflation: Inflation is currently at a 40-year high. If inflation remains high, this could erode corporate profits and lead to lower stock prices.
Interest rates: The Federal Reserve is currently raising interest rates in an effort to combat inflation. Higher interest rates can make it more expensive for companies to borrow money, which can lead to lower stock prices.
Geopolitical tensions: The war in Ukraine is currently causing a great deal of uncertainty in the global economy. This uncertainty could weigh on stock prices.
Despite these challenges, there are also some reasons to be optimistic about the stock market in 2024. For example, the US economy is still expected to grow in 2024, albeit at a slower pace than in previous years. Additionally, the Federal Reserve is expected to slow down its pace of interest rate hikes in 2024.
Overall, it is difficult to say for sure whether or not stocks will hit new all-time highs in 2024. There are a number of factors that could both positively and negatively impact stock prices in the coming year.
Time since the previous all-time high in the S&P 500
The S&P 500 has historically hit new all-time highs on average every 1.8 years. However, there have been periods of time when the S&P 500 has taken much longer to hit a new all-time high. For example, it took the S&P 500 over 11 years to hit a new all-time high after the dot-com bubble burst in 2000.
It is important to note that past performance is not indicative of future results. The S&P 500 could hit a new all-time high in 2024, or it could take many years for the S&P 500 to hit a new all-time high.
Investors should carefully consider their own investment goals and risk tolerance before making any investment decisions. Stocks can be a volatile investment, and there is always the risk of losing money. However, stocks can also be a good way to build wealth over the long term.
