A Rare Wall Street Event Just Triggered for Only the 19th Time in 80 Years -- and It Has a Perfect Track Record of Forecasting Directional Stock Moves
This unique indicator has correctly forecast the direction the benchmark S&P 500 would move 18 out of 18 times since the start of 1945.
For well over a century, Wall Street has been a wealth-creating machine. Though other asset classes have been successful in helping investors grow their nominal wealth, including real estate, bonds, and commodities such as gold and oil, nothing has come remotely close to matching the annualized returns of stocks over extended periods.
But just because Wall Street is unmatched in the annualized return column over the long run, it doesn't mean stocks aren't susceptible to periods of instability.
Over the last two months, the Dow Jones Industrial Average (DJINDICES: ^DJI), benchmark S&P 500 (SNPINDEX: ^GSPC), and growth-propelled Nasdaq Composite (NASDAQINDEX: ^IXIC) have all declined by double digits. The former two have fallen into correction territory, with the Nasdaq Composite officially entering a bear market on April 8.
