Posted 3/5/2024, 8:29:23 PM
S&P 500 Hits Record High, But Experts Say Milestones Have Little Predictive Value
- Stock market records theoretically mean little about future declines or ability to forecast the market
- Stock prices reflect future earnings and growth expectations, especially for tech firms investors see as strategically positioned
- Stock and bond markets useful as economic leading indicators due to forward-looking nature
- Hard to determine if milestones affect individual investor behavior; no clear pattern of response
- S&P 500 hits all-time highs infrequently so not enough data to draw conclusions about effects