Learn how to invest for stock market recovery in 2024. Discover the best stocks, sectors, and strategies to boost your portfolio. Read now and find out more.
Apple and Boeing: Two Stocks to Watch for Stock Market Recovery
The stock market had a tough start in 2024 after a spectacular rally in the last nine weeks of 2023. Will it bounce back and regain its momentum? That’s the question on many investors’ minds as they look ahead to a busy week on Wall Street. Some of the stocks to keep an eye on for stock market recovery are Apple (AAPL) and Boeing (BA). Apple soared by 48% in 2023. The tech giant is still the most valuable company in the world. This week, due to two downgrades on concerns about whether revenue growth in its first fiscal quarter and beyond will be low at best, the shares dropped by 5.9%.
Boeing, up 36.8% in 2023 thanks to a revival of travel and new orders, slid by 4.5% this past week.
And we don’t know what will happen to Boeing shares in the week ahead after a fuselage rupture on a Boeing 737 9 Max after a takeoff from Portland, Ore.
The Federal Aviation Administration ordered 171 737 Max planes operating in the United States to be grounded pending safety inspections. These take four to eight hours to finish, the FAA said Saturday (Jan 6).
Economic Reports and Interest Rates: Key Factors for Stock Market Recovery
Economic reports. The extensive reports are the Consumer Price Index report and the weekly Jobless Claims report, due Thursday. The price indexes may help the Federal Reserve decide when to start lowering interest rates. Futures trading suggests traders see six rate cuts this year, beginning with a cut in March from the current 5.25% to 5.5%. Many Fed watchers are doubtful. Other interest rates have been falling since October.
Fourth Earnings Season and Bitcoin ETF: Potential Catalysts for Stock Market Recovery
Fourth earnings season shifts into high gear. Conagra and others have already reported and warned about weak results. After three relatively quiet days, the reporting starts to get fast and furious with Taiwan Semiconductor (TSM), Infosys (INFY) and regional bank company WaFd (WAFD).
The financial giants come in. Friday, Jan 12, is their day to shine. They include health insurance giant UnitedHealth Group, JPMorgan Chase (JPM), BlackRock, Citigroup, Bank of America, Wells Fargo, and Bank of New York Mellon.
Delta Air Lines (DAL), the second-largest U.S.-based airline, reports on Friday.
Also, the SEC might give the green light to a Bitcoin-based ETF. This could boost the demand and price of the cryptocurrency, which has been volatile in recent months.
How to Invest for Stock Market Recovery
While no one can predict when the stock market will recover, history suggests it is inevitable. The United States has experienced dozens of corrections and bear markets, and the market has recovered from every one of them. And there is no reason to believe this time will be any different.
However, timing the market is a risky and futile strategy. Instead of trying to guess when the stock market will recover, investors should focus on building a diversified portfolio that can withstand market fluctuations and take advantage of opportunities.
Some of the ways to invest for stock market recovery are:
– Invest in quality companies with solid fundamentals, competitive advantages, and growth potential. These companies will likely survive, thrive in any market condition, and deliver long-term returns.
– Invest in sectors resilient to economic downturns, such as consumer staples, utilities, health care, and technology. These sectors provide essential goods and services, have stable demand, and benefit from innovation and digitalization.
– Invest in value stocks trading below their intrinsic value, have low debt, and pay dividends. The market undervalues these stocks, which have strong balance sheets and provide income and capital appreciation.
– Invest in emerging markets with higher growth potential, lower valuations, and favourable demographics. These markets are expected to outperform developed markets in the long run as they benefit from urbanization, industrialization, and consumption growth.
– Invest in alternative assets with low correlation with the stock market, such as gold, real estate, and cryptocurrencies. These assets can provide diversification, hedge against inflation, and offer exposure to new trends and technologies.
Conclusion: Stock Market Recovery Is Possible in 2023
The stock market had a tough start in 2024 after a spectacular rally in the last nine weeks of 2023. However, many experts are optimistic that the stock market will recover by the end of the year as the economy avoids a recession, the Fed eases monetary policy, and the Russia-Ukraine conflict is resolved.
Investors should not worry about when the stock market will recover but rather focus on the actions they take in the meantime. By investing in quality companies, resilient sectors, value stocks, emerging markets, and alternative assets, investors can position themselves for stock market recovery and long-term success.