Investors should celebrate 2023 after the S&P 500 (SPY) returned almost 25% (24.29%) in 2023. Technology stocks accounted for most of the gains. Solar firms and Pfizer (PFE) lost the most. Does danger lurk in 2024 due to the market’s reliance on technology stocks?
Nvidia (NVDA) accounted for over 10% of the index’s gains. At nearly 240% gains, its performance is ahead of Meta Platforms (META), up nearly 200%. Cruise ship stocks trailed Royal Caribbean (RCL) and Carnival (CCL) at a ~160% and ~130% return, respectively.
PulteGroup (PHM), AMD, Tesla (TSLA), Pala Alto (PANW), Salesforce (CRM), and Broadcom (AVGO) rewarded investors with over 100% in gains this year.
No one may predict if market sentiment reverses for the tech sector. Investors may buy puts, take small profits by selling some shares, and set stop losses in advance.
Stocks on SPY that lost money include SolarEdge (SEDG), Enphase (ENPH), Moderna (MRNA), and Pfizer. Moderna lost momentum because Covid vaccine sales weakened. However, the mRNA vaccine developer posted a monumental breakthrough in treating skin cancer. It may attract investors this year.
Bristol-Myers (BMY), Illumina (ILMN), and Insulet (PODD) are other healthcare firms that did not perform. Still, value investors may rotate out of technology and other high-flying stocks and into discounted stocks.
