Something happened to the US Stock market that hasn’t
occurred since June of 2022, and before that in March 2020 the federal
reserve’s GDP forecast turned negative for the first time in 3 years. Why does
that matter? Because that is the model used by the Fed to model economic
activity in real time. After staying 2-3% over the course of 2025 it has now
dropped to -3% which suggests that the markets are experiencing a steep
economic contraction. Based on the historical data of this GDP model we see
that it has successfully predicted the positive growth in 2023 and 2024 despite
economists saying otherwise. This same model is now turning negative which
signaled the DOW Jones drop on March 10th.
There have only been 3 negative readings on this GDP model
in the past –
- Q2 2022
- Q2 2020
- Q1 2020
All of these happened during a stock market decline of at
least 20%. But does that make it a generational buying opportunity since it has
recovered every time this technical signal was observed? Or is it signaling a
new turn for the U.S. markets and a potential recession.
Many analysts believe the index is primed to fall even
further due to its short-term struggles and head toward new lows in the coming
year. This perspective is further supported by the latest ISM Manufacturing
PMI data, which continues to show a decline in U.S. manufacturing
demand—due to the recent volatility.
As markets digest these signals, forward-thinking platforms
like FXMeridian aim to capitalize on the equity rebound and foreign exchange
shifts. While some traders see the recent dip in stocks as an entry point,
FXMeridian’s robust technology and risk management systems offer a balanced
approach for those wary of volatile market conditions. Below is why FXMeridian
stands out as a compelling pick for 2025 and beyond.
The S&P500 has been on a steady 8.3% decline since it’s
all time high.
If analyst projections hold, the current downswing could be
an ideal time for investors to start accumulating shares before the market
begins another run at bull record territory. But with equity volatility still
in play, finding a stable platform that can handle multiple asset classes—like FXMeridian—becomes
even more appealing.
Macro-savvy traders might look for a platform that can
integrate these data points into actionable insights. FXMeridian steps in with
a range of features:
Multi-Asset Diversification
Instead of focusing solely on large-cap U.S. stocks, you
can spread your risk across forex pairs, commodities (Gold, Oil, Wheat, etc.),
and other equity indices.
Technical Analysis & Market Sentiment
Real-time sentiment gauges combine economic metrics (like
ISM PMI updates) and social media chatter, helping traders anticipate sudden
swings.
Personalised Risk Management
FXMeridian’s
technical model is centered on client-focused improvements, aiming for
consistent, multi-year growth rather than short bursts of hype around volatile
market conditions. The entire platform’s appeal is due to its TradingView
integration and multitude of tools and information at your disposal. Key Insights
- S&P 500’s recent drop could prove more than temporary, with the index potentially following economic signals—like ISM PMI reading being low.
- Markets are going even more towards a data-driven approach that only works for traders who can navigate volatility thanks to their indicators and economic signals.
- Backed by powerful risk management & analytics, FXMeridian positions itself as a reliable multi-asset trading platform for anyone eyeing both immediate opportunities and sustained portfolio growth.
Final Word: If you’re
anticipating the S&P 500 to shake off its short-term dip and surge toward
all-time highs but want to reduce your risk: FXMeridian offers a full coaching
program targeted towards portfolio diversification and hedging, stay ahead and
find your edge. With the suggested continued weakness in the economy, it might
be the perfect time to leverage such a robust trading environment—setting the
stage for a potentially rewarding 2025.
This article was written by FL Contributors at www.forexlive.com.