Wells Fargo sees volatile S&P 500 in 2024 with a 4,625 target

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Wells Fargo sees volatile S&P 500 in 2024 with a 4,625 target
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Investors might face a bumpy ride with the S&P 500 index throughout 2024, according to Wells Fargo (NYSE: WFC ) Securities. The anticipated volatility is tied to economic shifts and potential changes in Federal Reserve policy, with the brokerage firm setting an end target for the index at 4,625. The forecast suggests a challenging environment for the first half of the year, with the possibility of improvement as the year progresses.

Wells Fargo advises a cautious approach to start the year, noting that high capital costs could limit the expansion of valuations. Despite these challenges, they see potential in certain sectors. Utilities and healthcare, described as oversold, are highlighted for their attractive valuations and solid fundamentals, even as the broader market may face constraints.

Investors are urged to focus on short-term opportunities within what Harvey calls a "trader's market." This strategy is in response to the expected increase in VIX volatility, a popular measure of market risk and investor sentiment. While Wells Fargo analysts dismiss the likelihood of the S&P 500 reaching the 5,000 mark, they underscores the importance of being selective and risk-averse, particularly at the beginning of the year.

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