This Bull Market Indicator Hasn't Been Wrong in 67 Years, and It Has a Clear Message for Where Stocks Head Next
When examined with a wide lens, the stock market is an unstoppable beast. On an annualized basis, it's outpaced the returns of bonds, gold, oil, housing, and the certificates of deposit (CDs) you'd find at your local bank or credit union over many decades.
But narrow your focus, and Wall Street becomes entirely unpredictable. Over the past 2 1/2 years, the iconic Dow Jones Industrial Average (DJINDICES: ^DJI), broad-based S 500 (SNPINDEX: ^GSPC), and growth-dominated Nasdaq Composite (NASDAQINDEX: ^IXIC) have surged to multiple all-time closing highs, then plunged into a bear market. In 2022, the Dow, S 500, and Nasdaq produced their worst full-year returns since the Great Recession.
Volatility and unpredictability of this nature repeatedly lead investors to ponder one question: When will it end? The answer, according to one tried-and-true indicator, is that the worst is over.
Source Fool.com
