Investors gear up for new buying opportunities as chatter around the Federal Reserve's potentially cut rates by mid-2024 continue to make the rounds on Wall Street.

Carson Group Chief Market Strategist Ryan Detrick joins Yahoo Finance to discuss why he is more bullish on the overall stock market and how it will broaden out past the previously hyper-focused tech sector.

"The [Russell 2,000] just had one of its largest two-month gains ever, like over 20%, the last two months last year," Detrick says on broadening bullishness onto small and mid cap stocks. "What does that mean? We took a look at the ten best two-month periods ever... One year later, the Russel [2,000], when you have two months like we just did, has been higher 9 out of 10 times, up 27% on average a year later."

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Nicholas Jacobino.

Video Transcript

RACHELLE AKUFFO: All three major indexes bouncing back this morning, as investors digest strong labor market data that will play into expectations for interest rate cuts. While we have seen pressure on US stocks in the first week of 2024, our next guest says there are still reasons to be bullish. Let's bring him in. Ryan Detrick, Carson Group chief market strategist. Good to have you on the show here.

So why so bullish after the week that was?

RYAN DETRICK: Yeah. We might have the first green day of the year today. So there's something to celebrate a little bit. But listen, I know a lot of people have talked about the end of the year rally that was really strong, but then we didn't gain during the Santa Claus rally. The last five days of the year and the first two days of this year, usually, are higher. And they weren't higher this time.

And there's a ton of ways we can look at this. I think I'll put it like this. We're in the midst of a nine-week win streak on the S&P 500. We think stocks were simply due for a well-deserved break. It's not like we're selling off massively here. I know techs underperformed a little bit to kick this year off because of those Apple downgrades. We can get into some more of the reasons.

I'll put it this way, though. A year ago, we didn't see a recession. We still do not see recession. When you don't have a recession with likely record earnings, with productivity coming back, look at the day's jobs number, we get into all the stuff, that just still makes sense to us that the path of least resistance, at least, for stocks is still higher.