Best Stock Picks 2024 (So Far)

And, Bitcoin's Jekyll and Hyde year.

July 08, 2024

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Today is Monday, July 8, 2024.

The Early Bird Index today is 75.16.

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Best Stock Picks 2024 (So Far)

The first half of the year was great for the stock market, but two sectors stood out above the rest in a powerful way.

Biggest Winners: The technology and the communication services sectors had a great first half of 2024. Technology stocks were up 28% and communication services stocks were up 26%. Keep in mind that the S&P 500 was up 15% during that time.

Early Bird’s Nest Egg Gains: Why did these two sectors rise to the occasion in the first half of the year? There are a few reasons behind this success.

  • The enthusiasm surrounding generative artificial intelligence has been a major driver of growth for tech and communication companies. This is especially true for some of the semiconductor producers.

  • Digital advertising spending has begun to recover, benefiting companies that rely heavily on ad revenue.

  • Several big tech stocks have rolled out buybacks and increased dividends, which has fueled investor interest.

  • Demand for connectivity, especially for fast broadband, has increased this year. 

Other Winners: It’s not just tech and communication stocks that are having a good year. The energy and financial sectors are both up 10%.

Final Thoughts: Some of these winners could fall in the second half of 2024, especially if interest rates remain high and there are no cuts.

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Notables

Notable Earnings Today: The Greenbrier Companies (NYSE: GBX).

Notable IPOs Today: Smurfit WestRock plc (NYSE: SW).

Notable Equity Crowdfunding Campaigns Ending Today: The*gameHERs (Wefunder), RemotelyMe (Netcapital).

Notable Economic Events Today: NY Fed 1-Year Consumer Inflation Expectations (11:00 a.m. ET), Consumer Credit (3:00 p.m. ET).

Bitcoin's Jekyll and Hyde Year

Bitcoin is up about 29% this year, but the first half of the year could be divided into two parts: A strong first quarter and a sluggish second quarter. Think of it as a Jekyll and Hyde year.

Powering the Story: Bitcoin climbed 61% during the first quarter. The approval of spot Bitcoin ETFs (exchange-traded funds) propelled Bitcoin because it made it easier for traditional investors to get access to the cryptocurrency. The anticipation of the Bitcoin halving event also boosted the price.

Yes, But: Bitcoin fell over 10% in the second quarter. It was a correction following the strong first quarter.

  • Inflows into Bitcoin ETFs slowed during the second quarter while outflows increased.

  • Inflation persisted and hopes for interest rate cuts faded.

Final Thoughts: Historically, Bitcoin’s best time of the year is in the fourth quarter. Will we see another fourth-quarter Bitcoin rally in 2024?

Ethereum’s Wild First Half

The price of the crypto Ethereum grew 46% in the first half of 2024. Like Bitcoin, it experienced a rising first quarter and a declining second quarter.

Final Thoughts: Ethereum’s first-quarter rise was tied to the approval of spot Bitcoin ETFs and its second-quarter slump was mostly a market correction.

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.