What will the stock market do in 2024? with Phil Blancato
In this episode of the Stuff About Money podcast, join Erik Garcia, CFP®, BFA, as he sits down once again with two-time guest Phil Blancato, CEO of Ladenburg Asset Management and Chief Market Strategist for Osaic Research. Phil shares his top 5 themes for the 2024 stock market, addressing key questions about inflation, the Federal Reserve’s next moves, and the impact of China on portfolios.
Erik and Phil also inject some humor into the conversation by exploring the connection between Nick Saban’s retirement as the head coach of the Alabama Crimson Tide college football team and its potential effects on the stock market. Tune in for a thoughtful and entertaining exploration of the financial landscape in 2024.
Episode Highlights:
- Phil shares his thoughts about the impact of Nick Saban’s retirement as Alabama Crimson Tide coach. (3:10)
- Phil explains that while inflation has decreased from its peak, the reset higher inflation is causing concerns about the state of the economy and the impact on markets, largely influenced by the actions of the Federal Reserve. (4:50)
- Phil believes that the first six months of the year will be challenging for the stock market due to high valuations, followed by better performance from cheaper stocks. (9:18)
- Phil mentions that the stock market is expected to have a positive year, especially during election years, with historical data showing average returns of 12% and a track record of positive returns when the Federal Reserve stops or cuts interest rates. (15:13)
- Phil believes that inflation may fall faster than expected, leading to a positive impact on the bond market and stock market in the second half of the year. (19:48)
- Phil explains that the bond market is expected to perform well in the coming years due to the slowing down of the economy and the Federal Reserve cutting interest rates. (25:17)
- Phil discusses why it is important to stay invested, make gradual changes to the portfolio, and focus on long-term strategies to outperform in the marketplace. (27:11)
Key Quotes:
- “Risk plus time equals reward. That’s all you have to know everybody. The less time you have, the less risk you take.” – Phil Blancato
- “History is a great place to begin in markets, history is on your side here, it’s a chance to really use history to your advantage.” – Phil Blancato
- “Let’s take advantage of what the market’s going to give us. What it is that we can do that’s going to allow us to really be smart about what’s happening in the marketplace.” – Phil Blancato
