{"id":201102,"date":"2024-01-16T09:45:00","date_gmt":"2024-01-16T14:45:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=201102"},"modified":"2024-01-16T13:12:55","modified_gmt":"2024-01-16T18:12:55","slug":"no-recession-in-2024-institutional-investors-long-on-magnificent-7-small-caps","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/stocks\/no-recession-in-2024-institutional-investors-long-on-magnificent-7-small-caps\/","title":{"rendered":"No Recession In 2024? Institutional Investors Long On Magnificent 7, Small Caps"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\" id=\"h-zinger-key-points\">ZINGER KEY POINTS<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Global investors more optimistic on the economy with 79% expecting soft or no landing.<\/li>\n\n\n\n<li>Investors remain overweight on U.S. equities with Mag7 best way to play Fed rate cuts.<\/li>\n<\/ul>\n\n\n\n<p>The world\u2019s top investors are becoming more confident that markets won\u2019t be hit by recession in 2024, with an overwhelming majority now backing the likelihood of a \u201csoft landing\u201d \u2014 or even \u201cno landing\u201d \u2014 for the&nbsp;<a href=\"https:\/\/www.benzinga.com\/markets\/equities\/24\/01\/36597914\/fed-rate-cuts-in-march-keep-dreaming-economists-say-as-inflation-spike-shakes-markets\" target=\"_blank\" rel=\"noreferrer noopener\">U.S. economy<\/a>.<\/p>\n\n\n\n<p>Global fund managers, polled each month by Bank of America, said in January\u2019s survey that the most crowded trade was \u201clong Magnificent Seven\u201d \u2014 that means backing further gains for the tech giants&nbsp;<strong>Alphabet Inc<\/strong>,&nbsp;<strong>Amazon.com Inc<\/strong>,&nbsp;<strong>Apple Inc<\/strong>,&nbsp;<strong>Meta Platforms Inc<\/strong>,&nbsp;<strong>Microsoft Corp&nbsp;<\/strong>and&nbsp;<strong>Tesla Inc<\/strong>.<\/p>\n\n\n\n<p>Despite it being a crowded trade, fund managers believed being long on the Mag7 stocks was still the among the best ways to play this year\u2019s&nbsp;<a href=\"https:\/\/www.benzinga.com\/markets\/equities\/24\/01\/36597914\/fed-rate-cuts-in-march-keep-dreaming-economists-say-as-inflation-spike-shakes-markets\" target=\"_blank\" rel=\"noreferrer noopener\">expected rate cuts<\/a>&nbsp;by the Federal Reserve.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Overweight U.S. Equities<\/h2>\n\n\n\n<p>Investors trimmed their global equity portfolios, but were at their highest overweight position on U.S. equities since December 2021, with \u201cmass preference for high quality.\u201d<\/p>\n\n\n\n<p>However, for the first time since June 2021, small caps were preferred to large. Indeed, since late October 2023 to its late December peak, the<strong>&nbsp;Russell 2000 index&nbsp;<\/strong>of small cap stocks rose 26%, compared to the&nbsp;<strong>S&amp;P 500<\/strong>\u2018s 16% increase over the same period.<\/p>\n\n\n\n<p><strong>Recession Risk Fades<\/strong><\/p>\n\n\n\n<p>A large majority of the respondents to the BofA survey \u2014 79% \u2014 said they expected either a soft landing \u2014 where economic activity slows down, but has no major impact on earnings \u2014 or, no landing at all \u2014 with the economy continuing to grow throughout 2024. Only 17% said they expected a hard landing.<\/p>\n\n\n\n<p>This echoed&nbsp;<a href=\"https:\/\/www.benzinga.com\/markets\/equities\/24\/01\/36599836\/exclusive-cpi-increase-just-a-hiccup-says-cme-economist-inflation-is-well-under-control\" target=\"_blank\" rel=\"noreferrer noopener\">comments last week<\/a>&nbsp;from former CME economist&nbsp;<strong>Bluford Putnam<\/strong>, who told Benzinga he didn\u2019t expect a hard landing in 2024.<\/p>\n\n\n\n<p>\u201cWe&#8217;re going to post gross domestic product growth of 2.5%-3% for 2023. I wouldn&#8217;t even call that a soft landing \u2014 I would say that is either average or slightly above potential GDP growth,\u201d he said.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Risk Factors<\/h2>\n\n\n\n<p>Of the key drivers for equity markets in 2024, over half \u2014 52% \u2014 named the Federal Reserve, while 33% said corporate earnings.<\/p>\n\n\n\n<p>Despite these findings indicating institutional investors remained largely \u201crisk on\u201d for 2024, the markets took a step back in early January. Although the S&amp;P 500 has now regained some momentum, after losing 1.5% during the first week of 2024.<\/p>\n\n\n\n<p>Indeed, BofA\u2019s Financial Market Stability Risks Indicator rose to 3 in January from 2.5 in December on \u201cgreater geopolitical risk\u201d and \u201cbusiness cycle risk\u201d including a potential economic hard landing and higher inflation.<\/p>\n\n\n\n<p>&#8212;<\/p>\n\n\n\n<p>Originally Posted January 16, 2024 &#8211; <a href=\"https:\/\/www.benzinga.com\/analyst-ratings\/analyst-color\/24\/01\/36640167\/no-recession-in-2024-institutional-investors-long-on-magnificent-7-small-caps\">No Recession In 2024? Institutional Investors Long On Magnificent 7, Small Caps<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The world\u2019s top investors are becoming more confident that markets won\u2019t be hit by recession in 2024.<\/p>\n","protected":false},"author":1278,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18,6,8,9,22,26,3],"tags":[15439,1117,1751],"contributors-categories":[13584],"class_list":{"0":"post-201102","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-macro","7":"category-north-america","8":"category-region","9":"category-securities","10":"category-stocks","11":"category-text-articles","12":"category-traders-insight","13":"tag-magnificent-seven","14":"tag-recession","15":"tag-small-caps","16":"contributors-categories-benzinga"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>No Recession In 2024? Institutional Investors Long On Magnificent 7, Small Caps<\/title>\n<meta name=\"description\" content=\"The world\u2019s top investors are becoming more confident that markets won\u2019t be hit by recession in 2024.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/posts\/201102\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"No Recession In 2024? Institutional Investors Long On Magnificent 7, Small Caps | IBKR Campus US\" \/>\n<meta property=\"og:description\" content=\"The world\u2019s top investors are becoming more confident that markets won\u2019t be hit by recession in 2024.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/stocks\/no-recession-in-2024-institutional-investors-long-on-magnificent-7-small-caps\/\" \/>\n<meta property=\"og:site_name\" content=\"IBKR Campus US\" \/>\n<meta property=\"article:published_time\" content=\"2024-01-16T14:45:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-01-16T18:12:55+00:00\" \/>\n<meta name=\"author\" content=\"Neil Dennis\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Neil Dennis\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\n\t    \"@context\": \"https:\\\/\\\/schema.org\",\n\t    \"@graph\": [\n\t        {\n\t            \"@type\": \"NewsArticle\",\n\t            \"@id\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/traders-insight\\\/securities\\\/stocks\\\/no-recession-in-2024-institutional-investors-long-on-magnificent-7-small-caps\\\/#article\",\n\t            \"isPartOf\": {\n\t                \"@id\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/traders-insight\\\/securities\\\/stocks\\\/no-recession-in-2024-institutional-investors-long-on-magnificent-7-small-caps\\\/\"\n\t            },\n\t            \"author\": {\n\t                \"name\": \"Neil Dennis\",\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/person\\\/a8e4475efc919de4108c21467b46fd9d\"\n\t            },\n\t            \"headline\": \"No Recession In 2024? Institutional Investors Long On Magnificent 7, Small Caps\",\n\t            \"datePublished\": \"2024-01-16T14:45:00+00:00\",\n\t            \"dateModified\": \"2024-01-16T18:12:55+00:00\",\n\t            \"mainEntityOfPage\": {\n\t                \"@id\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/traders-insight\\\/securities\\\/stocks\\\/no-recession-in-2024-institutional-investors-long-on-magnificent-7-small-caps\\\/\"\n\t            },\n\t            \"wordCount\": 464,\n\t            \"commentCount\": 0,\n\t            \"publisher\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#organization\"\n\t            },\n\t            \"keywords\": [\n\t                \"Magnificent Seven\",\n\t                \"recession\",\n\t                \"small caps\"\n\t            ],\n\t            \"articleSection\": [\n\t                \"Macro\",\n\t                \"North America\",\n\t                \"Region\",\n\t                \"Securities\",\n\t                \"Stocks\",\n\t                \"Text Articles\",\n\t                \"Traders' Insight\"\n\t            ],\n\t            \"inLanguage\": \"en-US\",\n\t            \"potentialAction\": [\n\t                {\n\t                    \"@type\": \"CommentAction\",\n\t                    \"name\": \"Comment\",\n\t                    \"target\": [\n\t                        \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/traders-insight\\\/securities\\\/stocks\\\/no-recession-in-2024-institutional-investors-long-on-magnificent-7-small-caps\\\/#respond\"\n\t                    ]\n\t                }\n\t            ]\n\t        },\n\t        {\n\t            \"@type\": \"WebPage\",\n\t            \"@id\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/traders-insight\\\/securities\\\/stocks\\\/no-recession-in-2024-institutional-investors-long-on-magnificent-7-small-caps\\\/\",\n\t            \"url\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/traders-insight\\\/securities\\\/stocks\\\/no-recession-in-2024-institutional-investors-long-on-magnificent-7-small-caps\\\/\",\n\t            \"name\": \"No Recession In 2024? Institutional Investors Long On Magnificent 7, Small Caps | IBKR Campus US\",\n\t            \"isPartOf\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#website\"\n\t            },\n\t            \"datePublished\": \"2024-01-16T14:45:00+00:00\",\n\t            \"dateModified\": \"2024-01-16T18:12:55+00:00\",\n\t            \"description\": \"The world\u2019s top investors are becoming more confident that markets won\u2019t be hit by recession in 2024.\",\n\t            \"inLanguage\": \"en-US\",\n\t            \"potentialAction\": [\n\t                {\n\t                    \"@type\": \"ReadAction\",\n\t                    \"target\": [\n\t                        \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/traders-insight\\\/securities\\\/stocks\\\/no-recession-in-2024-institutional-investors-long-on-magnificent-7-small-caps\\\/\"\n\t                    ]\n\t                }\n\t            ]\n\t        },\n\t        {\n\t            \"@type\": \"WebSite\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#website\",\n\t            \"url\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/\",\n\t            \"name\": \"IBKR Campus US\",\n\t            \"description\": \"Financial Education from Interactive Brokers\",\n\t            \"publisher\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#organization\"\n\t            },\n\t            \"potentialAction\": [\n\t                {\n\t                    \"@type\": \"SearchAction\",\n\t                    \"target\": {\n\t                        \"@type\": \"EntryPoint\",\n\t                        \"urlTemplate\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/?s={search_term_string}\"\n\t                    },\n\t                    \"query-input\": {\n\t                        \"@type\": \"PropertyValueSpecification\",\n\t                        \"valueRequired\": true,\n\t                        \"valueName\": \"search_term_string\"\n\t                    }\n\t                }\n\t            ],\n\t            \"inLanguage\": \"en-US\"\n\t        },\n\t        {\n\t            \"@type\": \"Organization\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#organization\",\n\t            \"name\": \"Interactive Brokers\",\n\t            \"alternateName\": \"IBKR\",\n\t            \"url\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/\",\n\t            \"logo\": {\n\t                \"@type\": \"ImageObject\",\n\t                \"inLanguage\": \"en-US\",\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/logo\\\/image\\\/\",\n\t                \"url\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2024\\\/05\\\/ibkr-campus-logo.jpg\",\n\t                \"contentUrl\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2024\\\/05\\\/ibkr-campus-logo.jpg\",\n\t                \"width\": 669,\n\t                \"height\": 669,\n\t                \"caption\": \"Interactive Brokers\"\n\t            },\n\t            \"image\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/logo\\\/image\\\/\"\n\t            },\n\t            \"publishingPrinciples\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/about-ibkr-campus\\\/\",\n\t            \"ethicsPolicy\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/cyber-security-notice\\\/\"\n\t        },\n\t        {\n\t            \"@type\": \"Person\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/person\\\/a8e4475efc919de4108c21467b46fd9d\",\n\t            \"name\": \"Neil Dennis\",\n\t            \"url\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/author\\\/neil1dennis\\\/\"\n\t        }\n\t    ]\n\t}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"No Recession In 2024? Institutional Investors Long On Magnificent 7, Small Caps","description":"The world\u2019s top investors are becoming more confident that markets won\u2019t be hit by recession in 2024.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/posts\/201102\/","og_locale":"en_US","og_type":"article","og_title":"No Recession In 2024? Institutional Investors Long On Magnificent 7, Small Caps | IBKR Campus US","og_description":"The world\u2019s top investors are becoming more confident that markets won\u2019t be hit by recession in 2024.","og_url":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/stocks\/no-recession-in-2024-institutional-investors-long-on-magnificent-7-small-caps\/","og_site_name":"IBKR Campus US","article_published_time":"2024-01-16T14:45:00+00:00","article_modified_time":"2024-01-16T18:12:55+00:00","author":"Neil Dennis","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Neil Dennis","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"NewsArticle","@id":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/stocks\/no-recession-in-2024-institutional-investors-long-on-magnificent-7-small-caps\/#article","isPartOf":{"@id":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/stocks\/no-recession-in-2024-institutional-investors-long-on-magnificent-7-small-caps\/"},"author":{"name":"Neil Dennis","@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/person\/a8e4475efc919de4108c21467b46fd9d"},"headline":"No Recession In 2024? Institutional Investors Long On Magnificent 7, Small Caps","datePublished":"2024-01-16T14:45:00+00:00","dateModified":"2024-01-16T18:12:55+00:00","mainEntityOfPage":{"@id":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/stocks\/no-recession-in-2024-institutional-investors-long-on-magnificent-7-small-caps\/"},"wordCount":464,"commentCount":0,"publisher":{"@id":"https:\/\/ibkrcampus.com\/campus\/#organization"},"keywords":["Magnificent Seven","recession","small caps"],"articleSection":["Macro","North America","Region","Securities","Stocks","Text Articles","Traders' Insight"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/stocks\/no-recession-in-2024-institutional-investors-long-on-magnificent-7-small-caps\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/stocks\/no-recession-in-2024-institutional-investors-long-on-magnificent-7-small-caps\/","url":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/stocks\/no-recession-in-2024-institutional-investors-long-on-magnificent-7-small-caps\/","name":"No Recession In 2024? Institutional Investors Long On Magnificent 7, Small Caps | IBKR Campus US","isPartOf":{"@id":"https:\/\/ibkrcampus.com\/campus\/#website"},"datePublished":"2024-01-16T14:45:00+00:00","dateModified":"2024-01-16T18:12:55+00:00","description":"The world\u2019s top investors are becoming more confident that markets won\u2019t be hit by recession in 2024.","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/stocks\/no-recession-in-2024-institutional-investors-long-on-magnificent-7-small-caps\/"]}]},{"@type":"WebSite","@id":"https:\/\/ibkrcampus.com\/campus\/#website","url":"https:\/\/ibkrcampus.com\/campus\/","name":"IBKR Campus US","description":"Financial Education from Interactive Brokers","publisher":{"@id":"https:\/\/ibkrcampus.com\/campus\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ibkrcampus.com\/campus\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ibkrcampus.com\/campus\/#organization","name":"Interactive Brokers","alternateName":"IBKR","url":"https:\/\/ibkrcampus.com\/campus\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/logo\/image\/","url":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/ibkr-campus-logo.jpg","contentUrl":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/ibkr-campus-logo.jpg","width":669,"height":669,"caption":"Interactive Brokers"},"image":{"@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/logo\/image\/"},"publishingPrinciples":"https:\/\/www.interactivebrokers.com\/campus\/about-ibkr-campus\/","ethicsPolicy":"https:\/\/www.interactivebrokers.com\/campus\/cyber-security-notice\/"},{"@type":"Person","@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/person\/a8e4475efc919de4108c21467b46fd9d","name":"Neil Dennis","url":"https:\/\/www.interactivebrokers.com\/campus\/author\/neil1dennis\/"}]}},"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/posts\/201102","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/users\/1278"}],"replies":[{"embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/comments?post=201102"}],"version-history":[{"count":0,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/posts\/201102\/revisions"}],"wp:attachment":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/media?parent=201102"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/categories?post=201102"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/tags?post=201102"},{"taxonomy":"contributors-categories","embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/contributors-categories?post=201102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}