This Bear Market Predictive Tool Hasn't Been Wrong in 77 Years: Here's Where It Says Stocks Head Next

As much as we'd like the stock market to only move higher, history shows that stock market corrections are a normal, and relatively common, part of the investing cycle.

Since the beginning of 1950, there have been 39 separate double-digit percentage declines in the benchmark S&P 500 (SNPINDEX: ^GSPC), according to data from sell-side consultancy firm Yardeni Research. The 30-component Dow Jones Industrial Average (DJINDICES: ^DJI) and growth-focused Nasdaq Composite (NASDAQINDEX: ^IXIC) have an extensive history of double-digit drops, too.

In 2022, investors contended with Wall Street's worst performance since 2008. The Dow Jones, S&P 500, and Nasdaq Composite all, respectively, entered a bear market and closed the year lower by 9%, 19%, and 33%.

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Source Fool.com