At the start of 2023, we saw dire headlines about the economy and the markets despite positive economic data. Ultimately, the results this year followed the data, not the headlines. Yes, there were (and are) many concerns and risks. As long as the data stays solid, however, so should the results. And that’s worth keeping in mind looking ahead to 2024, too. Although we see some economic slowing, fundamentals remain sound—and that should support the markets.
So, what does 2024 hold? If you look at headlines, you see a recession, high inflation, trouble abroad, and a market at serious risk. But if you look at the data, the picture is much brighter. Americans are getting jobs and earning more money. Businesses are investing in people, buildings, and equipment. Companies are expected to earn more money next year than this year, driven by sustained consumer spending. In other words, the data says the expansion continues. And, again, if we’re choosing to believe the headlines or the data, the latter is more trustworthy.
Brad McMillan, CFA®, Chief Investment Officer at Commonwealth Financial Network®, the firm we partner with to serve you, shares his outlook and perspective on what’s in store for the coming months in his recent article, “A Look Ahead to 2024.”