This Rare Market Warning Signal Has Flashed Only 2 Times Before. History Says This Comes Next.
This warning sign has historically always preceded a market crash.
Overview
The market just seems to keep going up, up, up. The S&P 500 (SNPINDEX: ^GSPC) has risen by 11.5% so far this year. That's on top of a 16.4% gain last year, the 23.3% gain in 2024, and the 24.2% gain in 2023. But investors are getting nervous that it may not last.
According to the American Institute of Individual Investors' weekly sentiment survey, 44.4% of individual investors expect the market to fall over the next six months. That's much higher than the historical average of 31.5%.
Details
There's another major warning signal for investors that has only occurred twice before. Both times, it preceded a huge market crash. Here's what to know.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.