This Isn't Last Year's Stock Market: Investor Says Rally Should Continue Throughout End Of Year, Into 2024

NewEdge Wealth Chief Investment Officer Cameron Dawson joined Benzinga’s Pre-Market Prep show Wednesday morning to discuss the recent rally in the stock market.

Dawson said that unlike last year when the market sold off toward the end of the year, this "Santa Claus rally" should last throughout the year and into the next. 

Dawson pointed out that strength in big-name tech stocks such as Apple Inc (NASDAQ: AAPL) and Microsoft Corp (NASDAQ: MSFT) will allow investors to hold their assets throughout the year and not cause tax-loss selling like the market encountered last year.

At the end of 2022, there was no "Santa Claus rally" to speak of and the S&P 500 dropped more than 6% in December. But Dawson says that this time around should be different. 

Read Also: Tech Stock Rally To Continue As Global Fund Managers Position For Soft Landing In 2024

“You’re not going to see the same kind of tax-loss harvesting dynamics like we saw last year,” Dawson said. “We think there’s going to be some kind of chase into the end of the year.” 

The market’s recent rally has been dizzying with the SPDR S&P 500 ETF (NYSEARCA: SPY) up nearly 10% from its recent lows in late October. The market continued to move higher Tuesday on a cooler-than-expected CPI print. 

But, Dawson says that if the market does rally into 2024, investors will also need to reassess where the market stands.

“Then it’s a matter of looking at earnings expectations,” Dawson said. “It’s really important to remember the market is always looking the next year forward.”

Watch the full interview here: 

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