This Stock Market Indicator Has Been 100% Accurate Since 1957. It Signals a Big Move in the S&P 500 in 2024.
In January 2022, the S&P 500 (SNPINDEX: ^GSPC) tumbled into a bear market amid the fiercest inflation in 40 years. Sentiment continued to crumble as the Federal Reserve raised interest rates at their fastest pace in four decades. Many economists predicted policymakers would steer the U.S. into a recession, and those warnings put downward pressure on the stock market.
Those predictions never came to fruition, at least not yet. Economic growth actually accelerated above its 10-year average in 2023. That resilience, coupled with a fascination about artificial intelligence (AI), changed investors' collective mood. The S&P 500 soared throughout the year and finally reached a new high in January 2024, making the new bull market official.
The onset of a new bull market has historically been a very reliable stock market indicator. For instance, the S&P 500 has always produced a positive return during the two-year period following the onset of a new bull market. But the indicator also portends substantial gains through February 2028. Here's what investors should know.
Source Fool.com
