The S&P 500 will likely generate tamer gains next year than in 2023 and 2024, and could even dip, Wharton School and WisdomTree economist Jeremy Siegel said Monday.
The stock index will likely deliver returns in the flat to 10% range, and "and a dip can’t be ruled out," he wrote in his weekly column on the WisdomTree website. The S&P 500 is up over 25% this year and rose nearly that much in 2023.
"Growth sectors may face headwinds from rising rates, and I can see a case where they are down 10%, while small-cap and value stocks, especially those tied to domestic production, could see a relative boost and have returns from 5-15%. However, all 12-month predictions come with a large standard error," Siegel said.
The equity market, however, shows no signs yet of a definitive rotation from “growth” to “value” stocks, the economist wrote.
