Are the Dow, S&P 500, and Nasdaq Composite Going to Plunge? This Historically Accurate Forecasting Tool Offers a Crystal-Clear Answer.
From Yahoo Finance: 2025-06-21 03:06:00
A forecasting tool with a 154-year back-test reveals potential trouble for major stock indexes, although history tends to favor long-term optimistic investors. Stocks have historically outperformed other asset classes, but market movements are unpredictable. The Shiller P/E Ratio, a valuation tool, suggests a looming downturn for Wall Street’s indexes. Past instances of a Shiller P/E over 30 have led to significant declines. While forecasts can’t predict exact timing, data shows stocks tend to recover after downturns. Despite short-term volatility, holding stocks for long periods has historically been profitable.
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