There's an exceptionally strong correlation between Federal Reserve rate-easing cycles and bear markets for the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average.
For more than a century, stocks have been the premier wealth creator. While other asset classes, such as real estate, commodities, and bonds, have done their part to grow the nominal wealth of investors, none of these other strategies have come close to matching the annualized return of stocks over long periods.
Recently, we witnessed the benchmark S&P 500 ( ^GSPC 0.53% ) , growth-fueled Nasdaq Composite ( ^IXIC 0.52% ) , and ageless Dow Jones Industrial Average ( ^DJI 0.52% ) all climb to record-closing highs. The rise of artificial intelligence (AI) and quantum computing, coupled with the pro