For the First Time in 65 Years, This Recession Indicator Has Been Wrong -- but Wall Street Isn't Out of the Woods Just Yet
Over the last century, no asset class has come remotely close to rivaling the annual average return that stocks have brought to the table. However, predicting what equities will do over a span of weeks, months, or even a few years simply can't be done with any accuracy.
Since this decade began, the iconic Dow Jones Industrial Average (DJINDICES: ^DJI), broad-based S 500 (SNPINDEX: ^GSPC), and innovation-powered Nasdaq Composite (NASDAQINDEX: ^IXIC) have vacillated between bear and bull markets on a couple of occasions. Although we're undeniably in a bull market right now, there's no assurance as to what the next couple of quarters have in store for Wall Street.
However, these uncertainties don't stop investors from leaning on select indicators and metrics to try to gain an advantage. One such recession-forecasting tool, which had previously not been wrong in 65 years, looks to have broken its flawless prediction streak. However, investors would be wise not to assume Wall Street is in the clear.
Source Fool.com
