Market Melt-Up into 2024

If you’re paying attention to the financial markets, you’ll notice the melt up occurring.

Perhaps, and not surprisingly, disconnected from reality.

But the stock market is not the economy.

The easing of inflation in 2023 and the hopes for a continued trend in 2024 have Wall Street optimistic, with a gentler Federal Reserve anticipated to foster solid market gains.

Gasoline prices and broader energy costs have dropped, with U.S. crude oil prices down about 10% in 2023. Furthermore, consumer spending has shifted, reflected in the ease of electronic and grocery prices.

Investment management company Invesco foresees an increase in global risk appetite come 2024 and a market rebound later in the year.

The anticipated low-interest-rate environment may further make expensive technology stocks attractive to investors. As a result, consumer-focused companies, particularly retailers, could benefit from this resilient economy.