This indicator has triggered just 5 times since 2000 — and it warns of a trap for stocks
Summary
A rare market indicator has recently activated, highlighting potential risks for the stock market. Because persistent inflation restricts central banks from lowering rates to support asset prices, a macro research firm recommends decreasing stock holdings while increasing allocations to bonds and cash.
Compared with previous market drawdowns, the current market setup is vulnerable because rising inflation limits the ability of central banks to ease rates and reflate asset prices. Reduce stocks and add bonds and cash, this macro research house advises
Source: Read the full story at MarketWatch.com - Top Stories
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