This Investment Strategy Has Been Foolproof Since 1900, and It's the Closest Thing You'll Get to a Guarantee on Wall Street

When back-tested, this simple strategy generated a profit 106 out of 106 times!

Feb 18, 2025 - 10:59
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This Investment Strategy Has Been Foolproof Since 1900, and It's the Closest Thing You'll Get to a Guarantee on Wall Street

For more than two years, the bulls have been running wild on Wall Street. The ageless Dow Jones Industrial Average, benchmark S&P 500 (SNPINDEX: ^GSPC), and growth stock-dominated Nasdaq Composite have all, respectively, reached multiple record-closing highs.

But there are also reasons to believe this epic rally in equities could come to an abrupt halt. The first notable drop-off in U.S. M2 money supply since the Great Depression in 2023, the longest yield-curve inversion in history, and the S&P 500's Shiller price-to-earnings ratio hitting one of its highest multiples in 154 years, are all examples of historic precedent and correlations coming into play.

Investors regularly look to these historic markers to decipher which direction the stock market might head next. Nevertheless, there is no concrete way to forecast short-term directional movements with 100% accuracy.

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