This Stock Market Indicator Has Been Right 83% of the Time Since 1983. It's Sending a Bullish Signal Now
Rising prices hit the U.S. economy hard on the heels of the pandemic, and many believe some blame lies with the Federal Reserve. Had policymakers moved more swiftly, they may have quashed inflation before it reached a four-decade high. Instead, the Fed delayed action for months, then attempted to course correct by pivoting into the fastest series of rate hikes since the 1980s.
That chain of events worried Wall Street. Many investors feared the Fed would overtighten and choke the economy into a recession, and that caused the S&P 500 (SNPINDEX: ^GSPC) to nosedive into a bear market last year. But the index has rebounded sharply in recent months, propelled upward by signs of economic resilience and better-than-expected earnings.
Better yet, one stock market indicator says the S&P 500 could climb even higher in the coming months.
Source Fool.com
