Are a Recession and Bear Market Imminent? A Virtually Flawless Predictive Indicator Weighs In.
Although Wall Street's major stock indexes don't move higher in a straight line, there's been no question that the bulls have been in firm control since the start of 2023.
Over a nearly 20-month stretch, the ageless Dow Jones Industrial Average (DJINDICES: ^DJI), benchmark S 500 (SNPINDEX: ^GSPC), and growth-powered Nasdaq Composite (NASDAQINDEX: ^IXIC) have respectively increased in value by 23%, 45%, and 68%, as well as surpassed their previous all-time highs on a multitude of occasions.
However, the party on Wall Street may be coming to a close. Even though investors were able to shrug off a 1,400-point, three-session plunge in the Nasdaq Composite to begin August, one predictive indicator, with a virtually flawless track record dating back to 1959, foreshadows trouble for the U.S. economy, as well as stocks.
Source Fool.com
