Where to Invest in Stocks in 2024

Plus: 8 risks for the new year, key themes for your portfolio, and top 6 moves to make now. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=50770&elqTrackId=4b9ffff662fc4f259016f15a0248f4f9&elq=f88c6edceed14e64a8795769bdf489e2&elqaid=50770&elqat=1&elqCampaignId=25456) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this week's newsletter: - [2024 Market Outlook: What a ‘Return to Normal’ Means for Stocks]( - [Four New Rules for Investors In 2024]( - [The Risks Ahead for 2024 and How Investors Can Manage Them]( - [Top 6 Portfolio Moves for 2024]( - [5 Pieces of Good News for Investors as 2023 Wraps Up]( - [Stocks to Buy in 2023: How’d We Do?]( If you’ve been too nervous to look at your investments this year, go ahead. Don’t be afraid.  U.S. stocks are ending 2023 within shouting distance of a new all-time high, up nearly 25% for the year, recovering just about all their losses from the bear market. Bonds, meanwhile, aren’t posting double-digit gains for the most part, but they’re largely in positive territory. Phew.   This week we’re hitting full stride on our year-end investing reviews and previews on Morningstar.com. Looking back on the year, [I spoke with Ivanna Hampton]( five key trends that turned into tailwinds for investors, and looked ahead to how they could play out for your portfolio in 2024.  Hot off the presses this weekend is the [2024 stock market outlook]( from Morningstar’s chief U.S. market strategist, David Sekera. He has some mixed news for investors: The overall market is now fairly valued, but Morningstar’s stock analysts continue to see undervalued opportunities. Sekera has suggestions on where investors can put their money to work and what to avoid, as well as an outlook for the Magnificent Seven stocks.  Critically, 2024 looks to start off with a markedly different investment landscape than what we faced a year ago. Specifically, inflation appears to have been tamed and the Federal Reserve’s next move is likely to cut rates, not raise them. [Sarah Hansen previews these and other key trends for 2024]( along with what they could mean for your portfolio, including cash you’ve socked away.  Meanwhile, [Amy Arnott ties some of the themes together in a quick read]( the top asset-allocation moves you can make with your portfolio for the new year.  Of course, just because markets are ending 2023 in better shape than they started the year doesn’t mean there aren’t risks that could come out of left field in 2024. Morningstar Investment Management's Marta Norton [examines eight potential economic and geopolitical events]( that could upend the market rallies, opportunities that could arise from them and ways to protect a portfolio against potential damage.  Lastly, Morningstar is all about transparency. In that tradition, Dave Sekera and Susan Dziubinski look back at some of the site’s stock-picking calls for 2023 and highlight both winners and losers. You can find [the video here]( That’s it for this week! Happy New Year to all, and we’ll be back next week with more year-in-review pieces and outlooks for 2024, including sector-by-sector stock picks.   As always, check out our [Markets page]( our latest coverage and live stock market updates, along with our [weekly calendar]( key upcoming data and events. Did a friend forward this email? [Sign up here](. [4 New Rules for Investors In 2024]( [4 New Rules for Investors In 2024]( Bonds are really back, cash isn’t king, and two more portfolio strategies to consider. Sarah Hansen [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [Stocks to Buy in 2023: How’d We Do? ]( [Stocks to Buy in 2023: How’d We Do?]( A look back at some of our winning and losing calls during the year. David Sekera, Susan Dziubinski [Top 6 Portfolio Moves for 2024]( [Top 6 Portfolio Moves for 2024]( Asset allocation adjustments to consider for the new year. Amy Arnott [5 Pieces of Good News for Investors as 2023 Wraps Up]( [5 Pieces of Good News for Investors as 2023 Wraps Up]( Plus, trends that could affect markets in 2024. Tom Lauricella, Ivanna Hampton [What’s Happening In the Markets This Week]( [What’s Happening In the Markets This Week]( Jobs report and Walgreens earnings to start the new year. Bella Albrecht [2023’s Best-Performing U.S. Stock Funds]( [2023’s Best-Performing U.S. Stock Funds]( Fueled by the ‘Magnificent Seven’ stocks, growth funds take the lead. Katherine Lynch [6 Critical Lessons for Bond Investors]( [6 Critical Lessons for Bond Investors]( 6 Critical Lessons for Bond Investors Eric Jacobson [4 Top-Rated Emerging-Markets Funds]( [4 Top-Rated Emerging-Markets Funds]( How our top-rated emerging-markets funds have performed. Ben Sater [2024 Market Outlook: What a ‘Return to Normal’ Means for Stocks]( [2024 Market Outlook: What a ‘Return to Normal’ Means for Stocks]( 2024 is lining up to be the first year after the pandemic when we are finally past all the disruptions and dislocations. David Sekera [3 Stories That Moved the Markets in 2023]( [3 Stories That Moved the Markets in 2023]( And what impact these stories may have on stocks in 2024. David Sekera, Susan Dziubinski [The Risks Ahead for 2024 and How Investors Can Manage Them]( [The Risks Ahead for 2024 and How Investors Can Manage Them]( Today’s risks feel elevated, so what really matters? Marta Norton, Ryan Murphy [PIPE Dreams: Investors Roll Dice With Private Investments]( [PIPE Dreams: Investors Roll Dice With Private Investments]( PIPEs help finance public firms, but as investments, their returns are lotterylike. Larry Swedroe Chart of the Week [Why Stocks Have Astounded]( [Why Stocks Have Astounded]( The wondrous math of U.S. equities. John Rekenthaler [Read More]( Share: [facebook]( [twitter]( [linkedin]( Recent Earnings [Undervalued by 20%, This Stock Is a Rare Buy in Its Sector]( This narrow-moat company stands to benefit from artificial intelligence—and its stock is cheap. Julie Bhusal Sharma [With Backdoor Roths, Is It Necessary to Zero Out IRA Accounts?]( And why tax preparers don’t like Roth accounts. From Kitces.com [2 Top Asset Manager Stock Picks]( Despite headwinds from downward pressure on fees and the bear market, bargain stocks are hard to find. Jülide Sengil [Is the Stock Market Open Today?]( Use this calendar to keep up with all the 2024 stock market holidays. Carole Hodorowicz [10 Undervalued Wide-Moat Stocks]( Cheap high-quality names from the Morningstar Wide Moat Focus Index are attractive stocks to buy for long-term investors. Susan Dziubinski Future-Proof Your Strategy With Morningstar Investor Build a portfolio that's durable, no matter what the market throws your way. Subscribe to Morningstar Investor and get unlimited access to our powerful ratings and performance data, unbiased analysis on thousands of stocks, funds, and ETFs, and portfolio management tools that give you a deep understanding of your investments so you know when to make changes to keep your strategy strong. [Start your free trial today](. 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