Presently final 12 months, everybody was fretting a few 2023 recession. That is the form of setup that led to a 55% rally within the Nasdaq (with some assist from AI) and a 24% rally within the S&P 500.
How does the market really feel going into 2024?
Recession calls have disappeared, shares are up 9 weeks in a row and there is the Concern & Greed Index.
My base case is that we see rotation from megacap tech into broader indexes or worth early within the 12 months however there is a compelling case that there are trillions of {dollars} on the sidelines that may movement into shares in 2024.
‘Excessive greed’ is rarely an excellent signal however there was an excessive change within the fundamentals, with yields dropping, the Fed signalling a pivot and inflation wanting prefer it’s lifeless.
