The Stock Market Could Soar 30% in 2024: 2 Magnificent Growth Stocks to Buy Hand Over Fist Before That Happens
The stock market roared back last year with the help of cooling inflation, a resilient U.S. economy, and a healthy jobs market. The best part is that some noted Wall Street analysts think the rally will continue in 2024.
Tom Lee of investment research firm Fundstrat said he expects the S&P 500 (SNPINDEX: ^GSPC) index to rise an added 9% in 2024 to 5,200. Lee also said there is a better-than-50% change that the index will jump by double-digit percentages this year. There's also a scenario, he noted, wherein the index could jump 30%.
Lee says that if corporate earnings grow by 10% and the S&P 500 index maintains a price-to-earnings ratio of 20 -- which has been the case more than 50% of the time when the 10-year Treasury yield ranges between 3% and 4% -- stocks could clock much stronger gains. With the 10-year Treasury yield hovering just around 4% now and inflation expected to drop to 2% this year, it won't be surprising to see Lee's bullish forecast turning into reality.
Source Fool.com
