From Nasdaq:

In 2023, the U.S. stock market saw a remarkable bull run, seeing gains of 13.7%, 23.9%, and 43.4% for the Dow, S&P 500, and Nasdaq Composite, respectively. However, 2024 brings uncertainty, as the first few trading days saw significant volatility and declines in all three major stock indexes. Market participants remain wary of a potential recession.

Despite uncertain stock market conditions, the Fed’s December FOMC meeting minutes indicate the possibility of a rate cut in 2024. A lower interest rate could boost economic growth and investment by businesses. Small-cap companies, as well as high-growth sectors like technology and consumer discretionary, are expected to benefit from the rate cut.

The U.S. economy remains strong despite record-high inflation and interest rates. With the recent projection of 2% GDP growth in the fourth quarter of 2023, the fundamentals of the economy are steady.

Investors are urged to buy on the dip, capitalizing on short-term market fluctuations. Using a systematic investment plan (SIP) strategy and selecting stocks based on established criteria, including the Zacks Rank, can help create a formidable portfolio to beat average market returns.

Selecting U.S. corporate bigwigs with strong growth potential and positive earnings estimate revisions can lead to a successful investment strategy. Stocks like General Electric, Microsoft, Amazon, Alphabet, and Netflix meet these criteria, making them attractive investment options.

Zacks Investment Research is offering a 30-day access to all their picks for just $1, allowing investors to become acquainted with their portfolio services and gain valuable insights into the best stock picks for the next 30 days.

The views expressed in this article are the author’s own and do not necessarily reflect those of Nasdaq, Inc.



Read more: Best Investment Strategy for 2024: Buy on the Dip