Stocks Will Indicate When the Tide Is Turning

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BY JUSTIN LAHART

During the 1990s, the U.S. stock market's ability to predict the economy was believed to trump all other forecasts. Representing the collective wisdom of millions of investors, it was seen as a near-perfect crystal ball.

After the dot-com bubble -- where shares of online travel agent Priceline.com soared to a higher value than those of all major U.S. airlines combined -- the market didn't seem much of an oracle. And more recently, stocks' wild swings appear more muddle than message. During the '90s, the Dow Jones Industrial Average rose or fell by 2% or more on 91 trading days. In ...

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