The Stock Market Is Doing Something Observed Only 4 Times Since 1997 -- and the Previous 3 Instances Ended in Disaster for Wall Street
History has a surprising ability to accurately foreshadow the future.
Overview
For more than a century, the stock market has demonstrated a knack for climbing the proverbial wall of worry. Despite a laundry list of headwinds, including recessions, depressions, wars, historically pricey valuations, and high inflation, the iconic Dow Jones Industrial Average (DJINDICES: ^DJI), broad-based S&P 500 (SNPINDEX: ^GSPC), and technology-inspired Nasdaq Composite (NASDAQINDEX: ^IXIC) have all motored to new highs.
But when the lens is narrowed to a shorter time frame, say a few years, the outlook for equities becomes far murkier.
Details
Just as history shows that patience is handsomely rewarded on Wall Street, it can serve as a warning over shorter timelines when one or more red flags crop up. Right now, we're witnessing the stock market do something that's only occurred four times over the last roughly three decades -- and the previous three instances all ended poorly for Wall Street and investors.
Source
Originally published at www.fool.com.