The stock market gave a signal for a new record in 2023

trading terminal with back theme candlesticks chart

It is possible that the S&P 500 will reach a new record high by the end of the year.

Evidence from the past indicates that the signal received last week is functional.

Robert Kiyosaki has cautioned that a stock market crash may be imminent.

Last week, the dollar index dropped by nearly 2.3%, while the US broad market index S&P 500 increased by 2.4%. This puts the index 7% away from its all-time highs of early 2022.

Bloomberg reports that since 2001, there have been nine occasions when the dollar dropped by more than 2% and the S&P 500 rose by at least 2% in the same week.

If the historical trend holds true, the S&P 500 has a 78% chance of increasing by 8.7% over the next six months. If this occurs, the S&P 500 could reach all-time highs by the end of the year.

RBC reports that Robert Kiyosaki, the author of the best-selling book Rich Dad Poor Dad, has cautioned of a potential collapse in the stock market.

Robert Kiyosaki has previously stated that he does not participate in the stock and bond markets, and has warned investors to be wary of a potential depression. Two months ago, he suggested investing in tangible assets such as gold and real estate.

Kiyosaki tweeted a warning to those whose future depends on stocks and bonds: "Be careful! Fear the onset of depression. As an entrepreneur, I prefer to be in control, so I don't play stocks and bonds. There are too many signs pointing to a major stock market crash."

Since the start of the year, the S&P 500 has risen 17% and the NASDAQ Composite, which is heavily reliant on high-tech stocks, has seen an even greater increase of 35%. This is despite the negative forecasts of Robert Kiyosaki, which are in stark contrast to the current positive state of the markets and the economy, as investors are optimistic that artificial intelligence will bring higher profits for companies.

The US annual inflation rate dropping to 3% has further strengthened the belief that the Fed may soon finish its rate increase cycle, which would reduce the risk of a recession and give a lift to stocks and other high-risk investments.