Why Stocks Could Rally 20% – Again – in 2024

Most investors never saw it coming... 2022 had inflicted an incredible amount of pain. Stocks and bonds fell in tandem. Nearly everyone expected the pain to continue in 2023. [Chaikin PowerFeed]( Editor's note: Marc Chaikin [sees a lot of "big tailwinds for stocks in 2024](... But he's far from alone. Today, we're turning things over to Brett Eversole from our corporate affiliate Stansberry Research. This essay first appeared in Brett's DailyWealth e-letter last Tuesday, January 9. Like Marc, Brett is always watching the market for signs of what to expect moving forward. And as you'll see today, he believes stocks could put on an encore of 2023 this year... Why Stocks Could Rally 20% – Again – in 2024 By Brett Eversole, editor, Stansberry Research Most investors never saw it coming... 2022 had inflicted an incredible amount of pain. Stocks and bonds fell in tandem. Nearly everyone expected the pain to continue in 2023. The market tends to do the opposite of what everyone expects, though. And instead of falling further, stocks soared. The market finished 2023 with a total return of 26%. A good chunk of those gains came in November and December. And the broad rally since late October points to more gains this year. In fact, history shows the market could rally more than 20% again in 2024... Recommended Links: ["2024's Market is a Trap"]( If you're holding stocks, you can't afford NOT to see this urgent warning from Joel Litman. He famously predicted the Financial Crisis in 2008, and is now sounding the alarm on a similar crisis unfolding on Wall Street – one that'll have dire implications for investors over the next three years. [It's time to move your money](. [Top 5 A.I. Stocks to Invest in 2023]( Investors are getting very rich in A.I. stocks right now. And according to 50-year Wall Street legend Marc Chaikin, there are FIVE A.I. companies Wall Street is buying hand-over-fist that need to be on your radar immediately. [Click here for names and tickers](. A year of 20%-plus market gains might seem like an outlier. But it's more common than you'd think. Excluding dividends, the market has posted 20%-plus annual gains 21 times since 1950. That means they happen more than a quarter of the time. What's more surprising is that gains of 20%-plus happen more often than losses. Stocks have only fallen in 20 calendar years since 1950. If you include dividends, the number is even lower. With that in mind, a gain of 20% or more this year isn't so crazy. That's especially true when you look at the year-ending rally in 2023. After bottoming in late October, stocks rallied 16.1% over the next seven weeks. That's the highest seven-week return since coming off the pandemic lows in 2020. Check it out... [Chaikin PowerFeed] Most folks would look at this rally and assume the market is overheated. They'll likely expect that a slowdown would come next. History disagrees. To see it, I examined every seven-week rally of 14% or more since 1950. We've only seen 33 similar setups over that period. And stocks kept soaring in almost every instance. Take a look... [Chaikin PowerFeed] Stocks have been a solid way to build wealth over the long term. Since 1950, the market has returned 7.9% per year. But you can do much better buying after setups like this one... Similar rallies led to 7.1% gains in three months, 11% gains in six months, and 19.3% gains over the next year. That's multiples better than the buy-and-hold return in each case. What's more, a year after these setups, stocks were higher 91% of the time. And the market gained 20% or more 55% of the time. Last year's incredible rally doesn't need to end anytime soon. Rather, it will likely continue. History tells us that another gain of 20% or more is possible this year. That's why you should stay invested in stocks today. Good investing, Brett Eversole Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -0.320% 11 17 2 S&P 500 +0.070% 147 286 65 Nasdaq +0.050% 43 44 12 Small Caps -0.140% 688 930 299 Bonds -0.200% Energy +1.130% 3 9 11 — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks remain Bullish. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Information Technology +4.41% Communication +2.46% Staples +1.10% Health Care +1.01% Discretionary +0.78% Real Estate +0.64% Industrials +0.61% Financial -0.45% Materials -1.06% Utilities -1.88% Energy -2.36% * * * * Top Movers Gainers [rating] CTSH +4.13% [rating] BK +4.02% [rating] NOC +2.94% [rating] VLO +2.73% [rating] PEAK +2.71% Losers [rating] UAL -10.63% [rating] AAL -9.46% [rating] DAL -8.97% [rating] WHR -5.15% [rating] VFC -4.42% * * * * Earnings Report Reporting Today Rating Before Open After Close PNC GS, MS No earnings reporting today. Earnings Surprises [rating] BAC Bank of America Corporation Q4 $0.35 Missed by $-0.29 [rating] C Citigroup Inc. Q4 $0.84 Beat by $0.14 [rating] JPM JPMorgan Chase & Co. Q4 $3.04 Missed by $-0.56 [rating] BK The Bank of New York Mellon Corporation Q4 $1.28 Beat by $0.16 [rating] DAL Delta Air Lines, Inc. 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