Gold vs. metal stocks vs. small caps: Where to invest in 2024 and what to expect in the year ahead.

AI illustration by Sadhana Saxena

Synopsis
While the small- and mid-cap space is overheated and market experts have been advising investors to exercise caution, the prolonged bull run has seen many blue chip stocks too entering the expensive territory. With metal and gold prices signalling firmness ahead, calendar 2024 could see a major shift in investment themes.

After ending calendar 2023 on a strong note with the BSE Sensex jumping 18% to settle above Mt. 72k, equities have started off the new year on a cautious note. As with the final stages of any parabolic rally, fatigue seems to be slowly setting in with bulls pausing for a breather. The National Stock Exchange’s broader Nifty 50 index, galloped 20% in the year gone by. The small- and mid-cap stocks too, which had a dream run with the indices