Small Caps Poised To Outperform S&P 500 In 2024: Analysts Forecast 15% Upside During Presidential Election Year
Portfolio Pulse from Piero Cingari
Goldman Sachs' equity research team forecasts a 15% return for the Russell 2000 small-cap index in 2024, outperforming the S&P 500's expected 9% total return. The iShares Russell 2000 ETF (IWM) is anticipated to see a 9% return in six months. Factors include low valuations, economic growth, investor behavior, and historical election year performance. Risks include weaker economic growth and rising interest rates, with small-caps being sensitive due to sector weights in Biotech, Banks, and Real Estate.
January 10, 2024 | 6:32 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Goldman Sachs projects a 9% return for IWM in the next six months and 15% for 2024, citing factors like low valuations, economic growth, and historical election year performance.
The positive outlook for the Russell 2000 index directly impacts IWM, which tracks this index. The forecasted growth is based on historical data, current valuations, and macroeconomic factors, suggesting a strong potential for short-term appreciation. However, the score is not a full 1 due to the mentioned risks of economic slowdown and interest rate hikes.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100