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In this episode of ETF Spotlight, I speak with Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors. We discuss the market outlook and investing strategies for 2024.

Stocks and bonds have soared lately as investors are becoming increasingly confident that the Fed will cut interest rates earlier and faster than expected. Can the Fed pull off a soft landing, or is the market getting ahead of itself?

US large-cap growth stocks’ gains in 2023 were driven mainly by multiple expansions, and with earnings expected to rebound in 2024, these stocks could continue to do well. Additionally, the momentum driven by AI-related factors might persist, offering growth prospects in 2024.

Investors should favor high-quality companies with strong pricing power, stable earnings, and healthy balance sheets, as market volatility is likely to move higher amid diminishing fiscal and monetary stimulus.

The SPDR NYSE Technology ETF (XNTK - Free Report) holds 35 leading technology companies in equal weights and therefore avoids too much concentration in the “Magnificent Seven” stocks that have already surged a lot.

The SPDR MSCI USA StrategicFactor ETF (QUS - Free Report) follows a multi-factor strategy that blends quality, value, and minimum volatility. Apple (AAPL - Free Report), Microsoft (MSFT - Free Report), NVIDIA (NVDA - Free Report), and Meta Platforms (META - Free Report) are among its top holdings.

The SPDR S&P Dividend ETF (SDY - Free Report) selects companies that have consistently increased their dividend for at least 20 consecutive years.

With the recession probability and mortgage rates declining, housing and home retail stocks could see momentum next year, driven by a resilient consumer. Further, homebuilders are currently trading at a much wider than usual discount to the S&P 500 Index.

Defense stocks could benefit from strong bipartisan support in Washington and rising geopolitical risks. However, defense spending could extend to advanced technologies with the emerging threat of AI and increased cyber warfare.

Take a look at the SPDR® S&P® Homebuilders ETF (XHB - Free Report) and the SPDR S&P Aerospace & Defense ETF (XAR - Free Report).

Tune in to the podcast to learn more about these ETFs.

Running Length: 00:34:09

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