U.S. Money Supply Hasn't Done This Since the Great Depression, and It Implies Something Big for Stocks

Wall Street can look vastly different depending on your investment timeline. When examined over multiple decades, we see that stock market corrections are commonplace, but the uptrend in the Dow Jones Industrial Average (DJINDICES: ^DJI), S 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) is well-defined.

But things change when that proverbial lens is narrowed. Over shorter periods, directional movements on Wall Street become far less predictable, as evidenced by the three major U.S. stock indexes plunging into a bear market in 2022.

Although new and tenured investors would love for an indicator or metric to predict concretely where stocks are headed next, no such indicator or metric exists. There are, however, select data points that have a knack for accurately predicting the directional movement in stocks more often than not. These indicators and metrics can potentially aid the investors who follow them.

Continue reading

Source Fool.com