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401(K) account balances have moved higher with the stock market for the past 5 months. Should investors expect that this move higher will continue?
KTRH MONEY MAN Pat Shinn says that a broader market move will be required to sustain the move higher - from small and mid-cap companies - not just the huge companies like NVIDIA and Google that have been responsible for the market's moves so far.
The economy seems to be on a trajectory for a "soft landing" - but it will not necessarily be a smooth, gentle glide from here. According to Shinn, the market is pricing in 3 additional Federal Reserve Bank interest rate cuts for the balance of 2024 - this may or may not be what actually happens - only time will tell. If corporate earnings disappoint, or employment numbers degrade, the economy could cool and cause the stock market to move lower too. For now, watchful and cautious optimism may be the rule of the day.
http://www.heritageassetadvisors.com/