Is the U.S. Heading Into a Recession? A Nearly Flawless Predictive Indicator Weighs In

One of Wall Street's few constants is volatility. Since this decade kicked off, the iconic Dow Jones Industrial Average (DJINDICES: ^DJI), broad-based S 500 (SNPINDEX: ^GSPC), and growth-fueled Nasdaq Composite (NASDAQINDEX: ^IXIC), have navigated their way through two bear markets (2020 and 2022) and one euphoria-driven bull market (2021).

With the major indexes sticking with their recent "theme" of reversing course every year, 2023 has led to strong returns for the S 500 and Nasdaq Composite. The $64,000 question is, "What's in store for Wall Street in the months, quarters, and years that lie ahead?"

To be upfront, there is no economic indicator or predictive tool that's going to accurately call directional short-term movements in the stock market 100% of the time. There are, however, certain metrics that have historically offered strong correlations to movements in equities, as well as the health of the U.S. economy.

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Source Fool.com