This Recession Forecasting Tool Hasn't Been Wrong in 57 Years. Here's What It Says Comes Next for the U.S. Economy and Stock Market.
Wall Street has taken investors on quite the ride since this decade began. The COVID-19 pandemic led to a breakneck bear market crash in 2020 for the ageless Dow Jones Industrial Average (DJINDICES: ^DJI), widely followed S 500 (SNPINDEX: ^GSPC), and growth-centered Nasdaq Composite (NASDAQINDEX: ^IXIC). This was followed by a virtually uninhibited rally to all-time highs for the major indexes in 2021, yet another bear market in 2022, and a seemingly uninterrupted rally through the first seven months of the current year.
When the stock market is volatile, new and tenured investors have a tendency to look for economic datapoints, indicators, metrics, or forecasting tools that might give them a clue as to the next directional move in the major indexes.
Although there is no surefire tool capable of accurately predicting directional short-term market movements 100% of the time, there are some datapoints that offer exceptionally strong correlations to directional stock moves. One such forecasting tool, which hasn't been wrong in 57 years, has a crystal-clear take on what's next for the U.S. economy and stock market.
Source Fool.com
