10 Commandments for Investing in 2024

If you were invested in the stock market, 2023 was a good year.

Even with a banking crisis that shook stocks, the equities market rallied almost to a new high, led by seven tech mega-companies that received a big boost from interest in artificial intelligence.

The SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500, saw total returns top 26% last year.

Analysts have noted, though, that the market wouldn’t have seen such gains without the “Magnificent Seven” tech stocks; most S&P 500 constituents underperformed the index in 2023, one economist noted last month.

As for the markets so far in 2024, the S&P 500 is up nearly 4% — and trading above 4,900. But some market bulls are concerned about its recent heights.

“We are wondering whether a bout of irrational exuberance might push the multiple higher, inflating a speculative bubble in the stock market as occurred during the late 1990s,” Ed Yardeni, a veteran market strategist, said last week.

Looking at 10 commandments for investors to consider in 2024, each lesson may seem like common sense to some financial advisors, but they’re still very valuable for you and your investor clients to review this year.

Investors have short memories, making it easy for them to assume that the stock market will go up forever or that investing is easy.

Dinah Wisenberg Brin contributed to this report.

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