Over long stretches, Wall Street has proven to be nothing short of a money machine. The stock market has handily outpaced the annualized returns of bank certificates of deposit (CDs), housing, oil, gold, and Treasury bonds over the long run.

But when examined over short periods, the stock market can be something of a crapshoot. Take 2022 as an example. Following up one of the strongest years in recent memory in 2021, the widely followed Dow Jones Industrial Average (DJINDICES: ^DJI), benchmark S 500 (SNPINDEX: ^GSPC), and technology-dependent Nasdaq Composite (NASDAQINDEX: ^IXIC) all plunged into a bear market and produced their worst full-year returns since the financial crisis.

Although 2023 has started off with a bang -- especially for large-cap tech stocks -- one leading economic indicator offers an ominous warning for Wall Street and investors.

Continue reading

Source Fool.com