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U.S. shares face headwinds in 2024 and seem to have already priced in potential optimistic occasions, Bob Doll, chief funding officer at Crossmark World Investments, recommended Monday.
Inventory market jitters to date this yr seem to stem from traders’ second ideas about what number of occasions the Federal Reserve will minimize rates of interest in 2024, in response to Doll.
“It’s unlikely that the Fed will minimize charges as a lot because the market expects, six occasions,” he mentioned in his weekly publication.
Fewer Fed cuts might put upward stress on longer-term rates of interest and downward stress on shares’ price-to-earnings ratios, he added.
Shares ought to face headwinds because of a weakening macroeconomic backdrop, Doll mentioned. Full-year company earnings estimates have dropped by practically $2 up to now two weeks, he mentioned, noting that the agency has predicted that company earnings progress will miss the 11% analyst consensus estimate.
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