2023 was a good year for those who were investing in the stock market.
Even as the banking crisis rocked stock prices, the stock market recovered to near new highs, led by seven tech giants that received a big boost from interest in artificial intelligence.
The SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500, had a total return of more than 26% last year.
But analysts say the market wouldn't have risen as much as it did without the Magnificent Seven tech stocks. One economist noted last month that most S&P 500 stocks will underperform the index in 2023.
As for the market so far in 2024, the S&P 500 is up nearly 4% and trading above 4,900. However, some market bulls are concerned about the recent high stock prices.
“I'm concerned that a bout of irrational exuberance could drive up stock prices and inflate a stock market speculative bubble like the one that occurred in the late 1990s,” veteran market strategist Ed Yardeni said last week. Ta.
Looking at the 10 commandments for investors to consider in 2024, each lesson may seem like common sense to some financial advisors. But they are still very valuable for you and your investor clients to review this year.
Investors' short memories make it easy to believe that the stock market will rise forever or that investing is easy.
Dinah Weisenberg Brin contributed to this report.
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