This Stock Market Indicator Has Been 77% Accurate Since 1950. It's Sending a Very Bullish Signal Now
The S&P 500 (SNPINDEX: ^GSPC) tumbled into bear market territory last year as rampant inflation rattled Wall Street. The Federal Reserve responded by raising the benchmark federal funds rate at its fastest pace in four decades, sending other interest rates across the economy higher.
That aggressive monetary policy exacerbated recession fears, and the S&P 500 slipped further into the red as economists became convinced of a looming downturn. In fact, the index delivered its worst calendar-year performance in 2022 since the Great Recession in 2008. But investor sentiment has improved substantially this year.
The S&P 500 rose 15.9% through the first half of 2023, driven higher by cooling inflation, better-than-expected earnings, and stronger-than-expected economic growth. And one stock market indicator says the index will maintain its upward momentum in the coming months.
Source Fool.com
