Market Viewpoint: Third Quarter 2024 Review & Outlook

The gap between mega-cap growth stocks and the broader market has increased, making both vulnerable to further consolidation. Small caps are driving a weakened investing environment, yet a lack of negative divergences suggests a major drawdown is unlikely. Indicators show strong Demand conditions. The Industrial, Energy, and Financial Sectors are expected to outperform, while Health Care and Consumer Cyclical Sectors are likely to lag. Selective and incremental buying is advised until broad-based Demand improves.