Are the Dow, S&P 500, and Nasdaq Composite Going to Plunge? This Historically Accurate Forecasting Tool Offers a Crystal-Clear Answer.

More than 150 years of history provides an ominous warning for Wall Street and investors.

Jun 21, 2025 - 08:33
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Are the Dow, S&P 500, and Nasdaq Composite Going to Plunge? This Historically Accurate Forecasting Tool Offers a Crystal-Clear Answer.

Investors have no shortage of ways to grow their wealth over time. They can buy real estate, put their money to work in fixed-income assets like certificates of deposit or U.S. Treasury bonds, and can purchase commodities like oil, gold, and silver. However, no other asset class has come within a stone's throw of stocks over the last century on an annualized return basis.

But just because stocks are the premier asset class to own over multiple decades, it doesn't mean Wall Street's major indexes move up in a straight line.

The iconic Dow Jones Industrial Average (DJINDICES: ^DJI), broad-based S&P 500 (SNPINDEX: ^GSPC), and growth-propelled Nasdaq Composite (NASDAQINDEX: ^IXIC), have endured their fair share of corrections, bear markets, and even crashes since their respective inceptions. In just a one-week period in early April, we observed the fifth-largest two-day percentage drop for the S&P 500 dating back to 1950, as well as the largest single-day nominal point gain for the Dow Jones, S&P 500, and Nasdaq Composite since their respective inceptions.

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