Welcome to 2024! Here's What We Expect in the Year Ahead - 7investing 7investing
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Welcome to 2024! Here’s What We Expect in the Year Ahead

7investing CEO Simon Erickson welcomes you to 2024 and shares what he expects for the year ahead.

January 4, 2024

My job, in a nutshell, is to make you a lot of money.

7investing issues stock market recommendations. That means we’re constantly having our feet held to the fire.

Furthermore, our business isn’t based upon generating tons of content or on advertising. We’re not running a TV show where we’re slamming the “Buy” button and then never looking back on the lightning round.

Instead, we’re almost entirely based upon subscriptions. Our picks are tracked and transparently displaced in real-time every minute of the day.

When our stock picks go up, people love us. You’re making money and you’re (normally) quite happy to pay us $17 per month for our research and our conviction. The odds are that you’re most likely making a lot more money than that from your associated investment gains.

This made our jobs fairly easy back in 2020. America was in a zero-interest-rate environment and we were at the tail of a strong bull market. At the end of the calendar year 2020, our average stock pick was up 54% after just nine months. Our advisors became extremely popular at cocktail parties.

Then the you-know-what hit the fan in 2022. Jerome Powell and the Fed put the American economy in a headlock, raising interest rates at the fastest pace on record and constricting business growth. Investing that year became incredibly difficult. Even the best-in-class companies would get punished just for issuing conservative guidance. The uncertain macro led the market to throw a lot of babies out with the bath water. We became significantly less popular as this year trudged along.

And yet now is when things really start to get interesting.

2024 is perfectly lining up to be a “stockpicker’s market.” The macro isn’t euphoric and overly-zealous any more. But it isn’t gloomy and hopeless either.

There were nearly $1 trillion worth of inflows ($985 billion, to be exact) that went into money market funds and ETFs last year, while more than $200 billion fled from large-cap equities. That means there’s a metric ton of dry powder sitting on the sidelines, eager to move back into stocks once rates come back down and banks aren’t paying 5% APR yields for cash any more.

So where will that capital go?

The hangover from 2022’s miserable returns will likely still linger, and most people won’t be interested in going YOLO and doing a cannon ball (or belly flop) into the deep end. We’re not going to see any more SPACs in 2024. And it’ll likely be another tough year for venture capital.

But this also provides an opportunity for the best-in-class companies to get even stronger.

Their weaker competitors got flushed out, forced to cut back on growth projects or to announce massive layoffs. That spells opportunity for those who are embracing the innovations taking place in the AI revolution, the mass-electrification of automobiles, the arms race in quantum computing, or a whole lot more developing trends.

Image source: Shutterstock.

What 7investing is doing in 2024

For all of the reasons above, we’re doubling-down on our highest-conviction ideas this year. That means really sharpening our pencils and recommending what we believe are the stock market’s best opportunities every month.

Though we’ll only be issuing two official reports, this will involve casting a very wide net to ensure those represent the best-of-the-best. We’ll keep conducting interviews with industry leaders, attending technical conferences, and pouring into annual reports and market forecast.

On top of that, I’m excited to begin sizing up 2-3 companies every week and emailing my insights directly to your inbox. And each of those will include our Conviction Rating.

What’s a Conviction Rating, you might ask?

Many of these companies will be popular in the media. You’ve most likely seen them mentioned on the TV, in financial headlines, or on social media.

But news coverage doesn’t always equate to great returns. The question I’m laser-focused on is what are the very best companies to invest in right now?

That’s what 7investing plans on answering for you this year. The Trade Desk’s (Nasdaq: TTD) integration of AI into its ad platform, Rocket Lab’s (Nasdaq: RKLB) skyrocketing average revenue per launch, and Krystal Biotech’s (Nasdaq: KRYS) better-than-expected sales of Vyjuvek make these companies three of our highest conviction “Strong Buys” that we believe look primed to prosper in 2024.

So I’d like to invite you to join us on the quest to find the market’s best stocks. We publish our official recommendations on the 1st of each month. And we’ve now made it extremely easy to get started by offering a full week test drive for just $1.

That will give you access to everything we offer. That will unlock all of the recommendation reports and the performance of our scorecard. You’ll be invited to join our monthly Subscriber Calls, where you can ask questions to our advisors and interact with other investors. You can also join our Community Forum, where we talk shop about stocks and share new investing ideas on a 24/7 basis.

And one last thing before I let you go. If you join 7investing and for any reason aren’t completely satisfied during your first month, just email me at info@7investing.com to let me know why. I’ll personally respond and will refund every cent of your membership fee.

I’m looking forward to finding some incredible long-term investments with you in 2024. Here’s to the upcoming stockpicker’s market and to the power of compounding returns!

Simon Erickson

7investing Founder & CEO

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