Buy the Dip or Wait? How Pros Are Investing Now

• The S&P 500 is expected to see substantial gains this year, likely in the 10-15% range, supported by strong earnings growth and a favorable macro environment.
• Market breadth is improving, with cyclical sectors (energy, materials, industrials) and non-U.S. markets (emerging markets, Europe) poised to outperform.
• The tech sector, particularly software, is undergoing a 'value reset' rather than disruption, and the 'Magnificent Seven' may see a pause as capital flows to other areas.
• Levitt advises adding on weakness in growth businesses trading at market valuations and diversifying into mid-cap and non-U.S. equities, especially emerging markets, which benefit from a weakening dollar.

Brian Levitt, Chief Global Market Strategist at Invesco, expresses a bullish outlook for financial markets in 2024, anticipating substantial gains in the S&P 500. He highlights a broadening market rally beyond the 'Magnificent Seven' tech stocks, driven by solid fundamentals, impending Fed rate cuts, and improving global economic indicators. Levitt recommends focusing on cyclical sectors, mid-cap, and non-U.S. markets for investment opportunities.