This Indicator Says the Stock Market Is Going to Have a Great Year. Is It Right?
The first month of 2023 is in the books, and it was a banger for the stock market.
The S&P 500 finished the month up 6.2%, while the tech-heavy Nasdaq jumped 10.7%. This would qualify as an above-average gain for the stock market in a whole year, let alone one month.
After a brutal 2022, investors are now encouraged by signs that inflation is getting under control and the Fed will cool off with its interest rate hikes. The economy has withstood the pressure from higher interest rates and inflation so far, with the unemployment rate remaining low. While some sectors, like tech and transportation, are showing signs of a recession, the overall economy seems robust enough to rebound later in the year if inflation continues to cool.
Source Fool.com
