You could argue that we are already in a bull market.

The Nasdaq is up 40% year to date, and the S&P 500 is up over 20%. Meanwhile, the Dow Jones just set a new all-time high.

So why aren’t you seeing the gains in your account?

Well, the indexes can be misleading.

Indexes are calculated based on the movements of small, specific groups of stocks, so unless you’re invested in the top performers, you’re probably not matching the “market’s” returns.

But all is not lost.

If the Federal Reserve is finished with its tightening cycle, then we could be in for a new bull market. And unlike 2023, when only a few select stocks skyrocketed, we could see a lot more stocks do well in 2024.

What are these stocks?

Here is a list of the sectors that will benefit if the Fed has truly stopped raising rates and begins to lower them in 2024…

Fixed Income

Think bonds and preferred stocks. The prices of these investments move in the opposite direction of interest rates.

Financial Stocks

Financial companies sit on piles of assets that are sensitive to interest rates, like government bonds and long-term mortgages. When rates move lower, these assets become more valuable. Lower rates also encourage borrowing for capital spending and consumer spending, and more borrowing means more growth and more profits for lenders.

Gold Stocks

The prices of gold stocks are tied to the U.S. dollar. As rates fall, the U.S. dollar becomes less attractive and gold becomes more attractive.

Small Cap Stocks

Perhaps the biggest beneficiary of lower rates is the small cap sector.

This sector is heavily dependent on the cost of capital – think small businesses using credit lines and borrowing in the short term.

When rates move up, these companies have limited flexibility to pass costs on to consumers or to borrow at favorable rates.

But with rates expected to decline in the year ahead, if there is one sector that could take off, it’s the small and midcap sector. You can play this sector with the iShares Russell 2000 ETF (IWM).

YOUR ACTION PLAN

While there’s reason to believe we’re in a bull market, the truth is the market will still be volatile going forward. And if we end up seeing as much sector rotation as I expect, then some massive tech stocks that boomed in 2023 will underperform in 2024. To combat this, you’ll want to position yourself in the stocks that investors are flocking to.

And we are chock-full of those opportunities in The War Room. Right now, we’re guaranteeing members will receive 252 winning trades in their first 12 months of membership.

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