This Predictive Indicator Has Never Been Wrong, and It Just Provided Wall Street With a Sobering Outlook
Over multidecade timelines, Wall Street is a bona fide wealth creator. But when looked at over much shorter periods, the directional movements in the iconic Dow Jones Industrial Average (DJINDICES: ^DJI), benchmark S 500 (SNPINDEX: ^GSPC), and innovation-fueled Nasdaq Composite (NASDAQINDEX: ^IXIC), are difficult to predict.
Truth be told, there is no such thing as a surefire economic datapoint or predictive indicator that can always, with 100% accuracy, alert investors as to the directional movements in the Dow, S&P 500, or Nasdaq Composite in advance. Nevertheless, there are datapoints and predictive tools that have exceptional track records when it comes to correctly forecasting directional movements for the U.S. economy and/or stock market.
One of those tools hasn't been wrong in 64 years, and it provided Wall Street with a sobering outlook this past week.
Source Fool.com
