S&P 500 Predicted to Reach New All-Time Highs by 2024

JPMorgan Wealth Management global investment strategist AJ Oden predicts that the S&P 500 will reach a new all-time high by mid-2024, with at least a 12% increase from current levels. This forecast is based on expectations that the Federal Reserve will pivot to rate cuts, creating a bullish environment for stocks. Oden points to the Fed's latest economic projections, which indicate a cooling of inflation and a potential soft-landing scenario. The market has already priced in a 44% chance of lower rates by June 2024. Oden also highlights the strength of the US consumer, suggesting that consumer discretionary stocks are well-positioned for performance. These views contrast with more bearish forecasts that predict a recession due to potential inflation rebounds and restrictive interest rates.