What's the market's state of mind going into 2024

<p>At this time last year, everyone was fretting about a 2023 recession. That's the kind of setup that led to a 55% rally in the Nasdaq (with some help from AI) and a 24% rally in the S&amp;P 500.</p><p>How does the market feel going into 2024?</p><p>Recession calls have disappeared, stocks are up nine weeks in a row and there's the Fear &amp; Greed Index.</p><p>My base case is that we see rotation from megacap tech into broader indexes or value early in the year but there's a compelling case that there are trillions of dollars on the sidelines that will flow into stocks in 2024.</p><p>'Extreme greed' is never a good sign but there has been an extreme change in the fundamentals, with yields dropping, the Fed signalling a pivot and inflation looking like it's dead.</p>

This article was written by Adam Button at www.forexlive.com.