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Can Stocks Pull Off a Third Consecutive Year of Big Gains?


Published on 2024-12-08 11:41:06 - Wall Street Journal
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  • One concern darkening the longer-term outlook is uncertainty about whether the AI boom can continue.

The article from The Wall Street Journal discusses the potential for U.S. stocks to achieve a third consecutive year of significant gains, a feat not seen since the late 1990s. Despite a strong performance in 2023, with the S&P 500 up nearly 20%, several factors could influence future market trends. Optimism stems from expectations of a soft economic landing, where inflation cools without triggering a recession, supported by the Federal Reserve's potential rate cuts. However, challenges include high stock valuations, geopolitical risks, and the possibility of an economic downturn. The article highlights that while historical data shows stocks can indeed rise for three years in a row, the current environment presents unique hurdles like elevated interest rates, persistent inflation, and the impact of previous monetary policy tightening. Analysts are divided, with some seeing continued growth driven by tech sectors and others warning of potential corrections due to overvaluation and economic uncertainties.

Read the Full Wall Street Journal Article at:
[ https://www.wsj.com/finance/stocks/can-stocks-pull-off-a-third-consecutive-year-of-big-gains-284b172a ]