Outlook 2024 - A Turning Point - LPL Research

Outlook 2024 - A Turning Point - LPL Research

December 18, 2023

LPL Research’s "Outlook 2024: A Turning Point" provides insight and analysis into next year’s opportunities, challenges, and potential surprises.

Although the economy has been stubbornly strong, we do expect to see a reset and definitive softening in 2024. The uncertainty surrounding a potential recession may limit stock gains as 2024 begins, but it could also bolster investor sentiment a bit if the Fed eases policy as a result. In the coming year, the rate and earnings cycles are likely to have a greater impact on stocks, as investors focus on the anticipated decline in interest rates and return of growth in earnings. With this in mind, we also see growth opportunities in the fixed income space, where investors can expect decent returns with lower risks compared to stocks. There are several issues that we’ll closely monitor throughout the year, including rising energy prices, heightened geopolitical pressures, still-tight financial conditions, and a potential slowdown in consumer spending due to increased debt burdens. Add to that the risk of global conflict that looms as a backdrop. While these factors could make the market environment somewhat challenging in 2024, we ultimately expect both stocks and bonds to perform well and provide ample opportunities.

Read the Full Outlook Report HERE