A Unique Event for the S&P 500 Just Occurred -- Its 6th Time in 75 Years -- and It Has a 100% Success Rate of Forecasting Future Stock Returns
A historic two-month rally for Wall Street's benchmark stock index points to an expectation of jaw-dropping returns over the next year.
Investors have a lot of ways to grow their wealth, including acquiring real estate, purchasing Treasury or corporate bonds, and buying commodities like gold, silver, and oil. While all of these investment channels have increased the nominal wealth of investors over the long run, none has held a candle to the annualized return of stocks over the last century.
Although Wall Street's major stocks indexes -- the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) -- have a knack for increasing in value over long periods, they can deliver roller-coaster volatility over shorter timelines.
For example, shortly after the benchmark S&P 500 hit its record-closing high on Feb. 19, the Dow Jones and S&P 500 would fall into correction territory within a matter of weeks. Volatility was even more pronounced in the growth-fueled Nasdaq Composite, which officially fell into a bear market in April.
