From Dow Jones & Company:

The financial markets are predicted to return to normal in 2024, according to Stuart Kaiser, head of equity trading strategy at Citigroup. The report by Kaiser and his team examines five key questions that could affect the markets in 2024, including broader earnings growth, the possibility of a U.S. recession, the Fed’s rate-cut strategy, and the correlation between stocks and bonds. Citi’s team predicts growth of at least 10% across 5 of 11 sectors in 2024, and is expecting a recession in the second quarter. The Nasdaq is already down more than 1% in the first trading session of the new year.

Kaiser and his team expect a shift back to ‘normal’ in 2024, including a revert to the historical norm for stock-bond correlation. They also predict a strong seasonal pattern of momentum stocks not performing well in January. Investors are advised to consider call options tied to the Russell 2000 or the equal-weighted version of the S&P 500 for enduring market leadership. U.S. stocks are on track to finish the first session of the year in the red, with the S&P 500 and Nasdaq both showing losses.



Read more: Here are 5 questions that investors should be asking as 2024 begins