Some people think the stock market is unpredictable, but in reality, there are many indicators to look for that can predict what will happen in the future. In this video, New Jersey forensic accountant Robert Bonavito explains just what to look for.
When predicting fluctuations in the stock market, our firm takes a close look at the spreads between a 2 and 10-year bond. For example, if everybody is buying the 10-year bond, the interest rate is going to go down, and the spread between the 2 and 10-year is going to be compressed. This tells us is that the economy is going to have issues going forward, and the stock market is going to go down.
If people are not buying that bond, the rates are going go up. This shows that people think the interest rate on the 2-year bond is too low, because the economy is getting better. This simple method works every time!
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Robert A. Bonavito, CPA
1812 Front St.
Scotch Plains, NJ 07076
908-322-7719
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