Investing.com UK - Financial Markets Worldwide
Get 40% Off
Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

S&P 500 Stuck In 4,600-4,800 Limbo For 2024? Wells Fargo Pinpoints 3 'Favored Sectors' For Next Year

Published 26/12/2023, 19:37
Updated 26/12/2023, 20:40
© Reuters. S&P 500 Stuck In 4,600-4,800 Limbo For 2024? Wells Fargo Pinpoints 3 'Favored Sectors' For Next Year

Benzinga - by Surbhi Jain, .

The Wells Fargo (NYSE:WFC) Investment Institute has released its 2024 Outlook, detailing their projections for market levels at the end of 2024 and highlighting their preferred sectors for the upcoming year.

S&P 500 Index target 4,600-4,800 in 2024

Wells Fargo has a 4.600-4,800 year-end 2024 target for the S&P 500 Index. Apart from the SPDR S&P 500 ETF (NYSE:SPY), the iShares Core S&P 500 ETF (NYSE:IVV) and the Vanguard S&P 500 ETF (NYSE:VOO) are two other popular ETFs that track the performance of the S&P 500.

Also Read: S&P 500 Likely To ‘Test The 5,000 Level’: JP Morgan On Where To Allocate In 2024

“Valuations likely will increase in 2024 as markets anticipate an earnings recovery into 2025” said Darrell L. Cronk, president of Well Fargo Investment Institute and the CIO of Wealth & Investment Institute.

Large-Caps Over Mid-Caps

They have a year-end 2024 target for the MSCI EAFE Index of 2,000-2,200.

The MSCI EAFE Index follows the performance of large and mid-cap companies in 21 developed market countries globally, representing regions of Europe, Australasia, and the Far East. Notably, it excludes companies from Canada and the U.S. The iShares MSCI EAFE ETF (NYSE:EFA) is a popular ETF that tracks the performance of the MSCI EAFE Index.

Analysts at the Well Fargo Investment Institute also prefer developed-market over emerging-market equities. Along with EFA ETF as mentioned above, the Vanguard FTSE Developed Markets ETF (NYSE:VEA) and the iShares Core MSCI EAFE ETF (NYSE:IEFA) are 2 other popular developed-markets equity-tracking ETFs.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

3 ‘Favored Sectors’

  • Healthcare: The Health Care Select Sector SPDR ETF (NYSE:XLV) and the Vanguard Health Care ETF (NYSE:VHT)
  • Industrials: The Industrial Select Sector SPDR ETF (NYSE:XLI) and the iShares U.S. Aerospace & Defense ETF (NYSE:ITA)
  • Materials: The VanEck Gold Miners ETF (NYSE:GLD) and the Materials Select Sector SPDR ETF (NYSE:XLB)

Now Read: Emerging AI Trends In 2024: BlackRock Sees Shift Beyond Semiconductors, Cloud To Model Infrastructure

Photo: Shutterstock

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.