This Stock Market Metric Warns History May Be Repeating Itself. Here’s How the Smartest Investors Are Preparing.
After years of record-breaking growth, major market indexes have stagnated. The S&P 500 (SNPINDEX: ^GSPC) and the Dow Jones Industrial Average (DJINDICES: ^DJI) have each dipped by around 2% from their all-time highs, while the Nasdaq Composite (NASDAQINDEX: ^IXIC) has slipped by close to 6%.
Investors are also feeling conflicted about the future of the market. Nearly 46% of investors believe stock prices will fall over the next six months, according to the latest weekly survey from the American Association of Individual Investors, while 37% are bullish about the future, and the remaining 17% expect little change.
While it’s impossible to predict how stocks will perform in the coming months, the market is sending a warning signal that has only been seen during the dot-com bubble. Here’s how investors can prepare right now.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.