Reported 1 day ago
Investors have long viewed the stock market, particularly the S&P 500, as a predictor of economic conditions, but this perception is outdated. The article argues that the market is no longer a reliable signal for economic forecasting due to significant distortions caused by passive investment flows, centralized liquidity strategies, and systematic trading behaviors. The concentration of mega-cap companies influences index performance, masking underlying economic struggles. Instead of relying on the S&P, investors are advised to focus on liquidity metrics, equal-weighted indexes, insider trading activity, and corporate catalysts to identify true market opportunities.
Source: YAHOO