Energy prices in 2023 are expected to be 23 percent lower than 2022 on average and remain broadly stable in 2024. The risks to the forecast are tilted to the upside, primarily because many of the factors that have caused shocks to commodity markets in recent times are still present.
How will the stock market perform in 2024?
It’s difficult to predict how the stock market will perform on a year-to-year basis, but analysts are generally optimistic about the outlook for 2024. The average 12-month analyst price target for the S&P 500 is 5,148, or about 15% above current levels.
What will inflation look like in 2024?
The Survey of Professional Forecasters shows the median prediction for 2024 inflation is 2.5% (CPI) and 2.4% (PCE). The Wall Street Journal survey shows similar results. My own forecast is a bit less optimistic, looking for about three percent inflation in 2024, measured from year-end to year-end.
What is the growth outlook for the energy sector in 2024?
The communication services sector is expected to lead the way with 18% earnings growth, while the information technology sector is expected to generate a market-leading 9.2% revenue growth in 2024. At the other end of the growth spectrum, analysts forecast 2024 energy sector earnings growth of just 2.4% and revenue growth of just 0.9%.
