1. Will the bullish trend in the U.S. stock market continue to grow in 2024?

In 2023, AI emerged as the hottest topic in the stock market. Nvidia led with a 234.29% gain, making it the champion among large-cap stocks. The U.S. market outperformed globally, with the Nasdaq 100 Index surging by 53.36% and the S&P 500 Index rising by 23.83%. Concerns arise about whether the U.S. market has risen too much, but as Warren Buffett often says, shorting the S&P 500 Index is challenging. Since the end of 2010, the S&P index has seen a cumulative return of 340%, compared to 95% for European stocks and only 20% for emerging market stocks, with China experiencing negative returns during this period.

2. Major investment banks provide outlooks on the U.S. stock market.

As the saying goes, "the strong get stronger"! Bank of America, Citigroup, HSBC, Goldman Sachs, and Deutsche Bank have all offered optimistic outlooks for the U.S. stock market in 2024.

Bank of America believes that after significant economic slowdown or credit risk events such as credit risk, a drop in oil prices, and a significant decline in consumption, the bull market in the U.S. stock market will drive the S&P 500 index to 5,000 points.

HSBC expects the possibility of a Fed rate cut in the next year to be a tailwind for the U.S. stock market. If the Fed can bring inflation back to target without causing a recession, achieving an economic soft landing, then 5,000 points may still be somewhat conservative. Historically, in the six months after the end of a rate hike cycle, the S&P 500 index has had an average return rate of 22%, provided that an economic recession is avoided.

Goldman Sachs, on the other hand, raised its forecast for the S&P 500 index from 4,700 points to 5,100 points, citing the continued rise in rate cut expectations. Slowing inflation and the Fed's easing policy will keep real yields low, supporting a price-earnings ratio of over 19 times for U.S. stocks.

Additionally, Deutsche Bank does not consider current U.S. stock valuations to be too high. In its latest report, Deutsche Bank pointed out that even in the event of a mild recession in the United States, corporate earnings are expected to remain resilient. It forecasts that the S&P 500 index could rise by 7% to reach 5,100 points by the end of next year.

3. For novice investors entering the U.S. stock market, where can they start with investment opportunities?

Investing in U.S. stock ETFs could be a good option because of their diversification, which allows investors to build a well-rounded investment portfolio. It's essential to diversify your investments! Don't put all your eggs in one basket. This way, you can maximize risk hedging and ultimately achieve "not putting all your eggs in one basket" in case one side underperforms.

Uncertain about how to allocate your investments? Keep an eye on uSMART Follow Investment's Value Investment Portfolio - a globally diversified ETF strategy. Let the experts assist you in achieving a well-rounded portfolio with just one click.

This strategy is based on global asset diversification and the dynamic allocation of stocks, bonds, and gold, aiming to tailor a configuration-based asset portfolio suitable for long-term holding according to different investment goals.

The main investment targets include stock and bond ETFs, as well as commodity, forex, and gold asset ETFs.

Given the continuously improving core data of the US stock market and the comprehensive cooling of inflation data since November, along with the labor market trending towards strength, it has sparked optimism in the market for an economic soft landing.

Furthermore, with the remarkable growth rate of emerging economies and the population dividend combined with the global shift in manufacturing, resilience is expected to be  sustained.

In Q4, the strategy promptly liquidated assets in China and Hong Kong, replacing them with ETFs in emerging regions, while maintaining positions in US and Japanese assets, and increasing the weighting of high-yield bonds.

The Global Aggressive Allocation ETF Portfolio achieved a return of 24.99% in the past year, surpassing the benchmark (Core Aggressive Allocation Index with a return of 17.19% in the past year) by approximately 5.1 percentage points.

The Global Growth ETF Portfolio achieved a return of 21.71% in the past year, surpassing the benchmark (Core Growth Allocation Index with a return of 14.05% in the past year) by approximately 5.3 percentage points.

If you prioritize stability and safety in your investments, we also offer conservative and balanced strategies for you to choose from.

In essence, our strategies combine various asset classes with different expected returns and risks. By leveraging the low correlation between these portfolio products, we diversify risks while balancing the strategy's returns and volatility.

For more information, please contact your account manager or visit the uSMART app!

4.How to place a trade on uSMART mobile application

Smart Investment -Opportunities - Select Strategies

This diagram is provided for illustrative purposes exclusively

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We have based this article on our internal research and information available to the public from sources we believe to be reliable. While we have taken all reasonable care in preparing this article, we do not represent the information contained in this article is accurate or complete and we accept no responsibility for errors of fact or for any opinion expressed in this article. Opinions, projections and estimates reflect our assessments as of the article date and are subject to change. We have no obligation to notify you or anyone of any such change. You must make your own independent judgment with respect to any matter contained in this article. Neither we or our respective directors, officers or employees will be responsible for any losses or damages which any person may suffer or incur as a result of relying upon anything stated or omitted from this article.

This document should not be construed in any jurisdiction as constituting an offer, solicitation, recommendation, inducement, endorsement, opinion, or guarantee to purchase, sell, or trade any securities, financial products, or instruments or to engage in any investment or any transaction of any kind, nor is there any intention to solicit or invite the purchase or sale of any securities.

The value of these securities and the income from them may fall or rise. Your investment is subject to investment risk, including loss of income and capital invested. Past performance figures as well as any projection or forecast used in this article is not indicative of its future performance.

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