Although history doesn’t repeat itself to a T on Wall Street, it does have a strong tendency to rhyme.
Over the last month, Wall Street has sent investors a stern but necessary reminder that stocks can indeed move lower just as easily as they can head higher.
In 2024, we’ve witnessed the mature stock-driven Dow Jones Industrial Average (^DJI 0.13%), benchmark S&P 500 (^GSPC 0.47%), and innovation-fueled Nasdaq Composite (^IXIC 0.51%) all fly to record-closing highs on multiple occasions. This is consistent with what history has shown us. In other words, Wall Street’s prominent stock indexes increase in value over long periods, eventually putting corrections, bear markets, and crashes in the rearview mirror.
However, history is a two-sided coin.
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Among Wall Street’s three major stock indexes, the growth stock-powered Nasdaq has been hit the hardest. Over a three-session stretch from Aug. 1 through Aug. 5,…
