Morningstar’s Q4 2024 US Market Outlook: Will the Great Rotation Persist?

The great rotation into value stocks as well as mid- and small-cap stocks finally began in July 2024. Since the public release of ChatGPT, the market has been singularly focused on the growth opportunities from artificial intelligence. As those large-cap, growth stocks most closely tied to AI skyrocketed, small-cap and value stocks were left in the dust. In our last quarterly outlook, we reviewed why we thought the AI trade had run its course and that market returns would begin to broaden out. In this quarter’s webinar, we are going to review why we think this rotation has further room to run.   Join Morningstar’s Chief U.S. Market Strategist Dave Sekera, CFA, and Chief U.S. Economist Preston Caldwell, as they review why we expect the economy will dodge a recession and which areas in the market still offer upside opportunities.  Learn where we see undervalued opportunities within a more than fully-valued market and how we expect the US economy will play out over the course of this year. We will:  Break down our valuations and identify undervalued opportunities across categories, sectors, and stocks.   Highlight investable contrarian plays.   Provide our forecasts for real U.S. GDP, inflation, and interest rates.  In our market outlook, we utilize a bottom-up perspective to determine market valuation. By leveraging the 1,600 companies covered by Morningstar's equity analysts, we identify which areas are undervalued versus which are overvalued. From growth stocks to value stocks and from small-cap to large-cap, we will identify where we see value today. Following the presentation, we take as many questions from the audience as time allows.  This webinar has been accepted by the CFP® Board for one continuing education (CE) credit for CFP® designations.