Are Stocks About to Plunge? A Top Valuation Metric With an Immaculate Track Record Dating Back to 1871 Weighs In.

When examined over lengthy periods, the stock market trounces all other asset classes. Over the past century, the average annual return for Wall Street's major stock indexes -- the Dow Jones Industrial Average (DJINDICES: ^DJI), S 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) -- has handily outpaced the annualized returns of oil, gold, certificates of deposit (CDs), and Treasury bonds over the same timeline.

But it's a much different story if you narrow the lens. Since this decade began, the Dow Jones, S 500, and Nasdaq Composite have alternated bear and bull markets in successive years. Following record highs for the Dow and S 500, and a nearly 60% rally for the Nasdaq Composite from its 2022 bear market low, this pattern suggests Wall Street could be in for a rough 2024.

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Source Fool.com