Anyone who invests in the stock market will know that there are plenty of emotions involved. Optimism, excitement, euphoria, anxiety, fear, desperation… these are just some of them.
As we approach 2024, I have to say that I’m feeling pretty excited. In fact, I don’t think I’ve ever been so excited in nearly 25 years of investing.
Tech creates life-changing opportunities
One reason I’m enthusiastic heading is that we’re in the middle of a technology revolution (aka the ‘Fourth Industrial Revolution’).
Right now, businesses all around the world are turning to technologies like artificial intelligence (AI), data analytics, robotics, and cloud computing to transform themselves.
Meanwhile, consumers are increasingly adopting online shopping, digital payments, video streaming, generative AI, and other technologies that can make their lives easier.
A lot of companies that operate in these industries are generating phenomenal returns for investors.
Just look at Nvidia, which makes chips for AI. It’s up more than 1,000% over the last five years.
The thing is, this tech revolution could last for years, if not decades.
So, I reckon there are going to be some amazing wealth-creation opportunities for long-term stock market investors like myself in the years ahead.
The stock market rally could broaden out
Another reason I’m pumped up is that I expect the global stock market rally to broaden out in 2024.
2023 was all about the mega-cap US technology stocks. Thanks to interest in AI, these stocks shot up.
Looking ahead, most experts expect other areas of the market to start rising (many already have).
Healthcare – which underperformed in 2023 – is one sector I’m very bullish on. There are some really exciting developments going on in this industry right now.
GLP-1 weight-loss drugs are one example. These could potentially help us eliminate obesity (one of the leading causes of death worldwide) and live longer.
Robotic surgery is another. This technology can help surgeons do their jobs better.
I’ve been loading up on a healthcare fund recently to increase my exposure to the sector.
Small-cap stocks look ready to pop
Finally, I’m really excited about UK small-cap stocks.
This area of the stock market has been smashed over the last two years as interest rates have risen, and many stocks now look dirt cheap.
I can see a powerful rebound on the horizon. History shows us that when interest rates fall, small-caps tend to outperform. And most experts see rate cuts coming next year.
I’ve been positioning my investment portfolio accordingly.
So overall, there’s a huge amount to be excited about as we head towards 2024, in my view.
Of course, no-one knows what will actually happen in the stock market next year. History shows that it’s notoriously unpredictable.
Taking a long-term view, however, the future looks bright.
The post Heading into 2024, I’ve never been more excited as a stock market investor appeared first on The Motley Fool UK.
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Edward Sheldon has positions in Nvidia. The Motley Fool UK has recommended Nvidia. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
