This Recession Indicator Hasn't Been Wrong in 57 Years, and It Has a Very Clear Message for Wall Street
The stock market is a phenomenal wealth creator, if you give it time. However, the movement of equities can be far less predictable over shorter periods.
Last year, the ageless Dow Jones Industrial Average (DJINDICES: ^DJI), widely followed S 500 (SNPINDEX: ^GSPC), and growth-driven Nasdaq Composite (NASDAQINDEX: ^IXIC), all fell into a bear market and respectively lost 9%, 19%, and 33% of their value by years' end. It marked the worst performance for this trio since 2008.
Despite the long-term outperformance of equities, down years of this magnitude rightly have investors -- especially new investors -- wondering what's next for stocks. The answer to that question may be found in one of Wall Street's most-trusted indicators.
Source Fool.com
