2024 Stock Market Predictions: Bullish Forecasts and Embarrassed Strategists

Tom Lee, head of research at Fundstrat, has given the highest 2024 forecast for the S&P 500 yet, projecting the benchmark index to reach 5,200 by the end of the year. Lee believes that falling inflation and easing financial conditions will support the US economy and prevent a recession. His target surpasses other strategists' predictions and is based on market breadth, with a focus on small caps, financials, and real estate. Lee remains bullish on the tech sector and expects it to outperform the broader market. He also sees potential for further rate cuts from the Federal Reserve, which could benefit small caps, financials, and real estate. The risk of a recession is not seen as a major threat, as it could lead to more rate cuts by the Fed.