WSJ: Where to Exit the Market Herd

By SIMON CONSTABLE

Going with the crowd might have helped in high school, but it’s not necessarily a good investing tactic. With that in mind here are three contrarian investment plays.

Europe’s a Mess, So Invest There

With few exceptions (the United Kingdom being one) the European Union is looking weak. The specter of deflation looms across the continent, a phenomenon of falling prices that cripples growth. On top of that, unemployment remains high and terrorists recently attacked the heart of France. See original story here.  

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WSJ: What the ‘January Effect’ Means. It’s Not the Same as the ‘January Barometer.’

By SIMON CONSTABLE

During the first month of the year you may hear stock traders talk about the “January effect” and the “January barometer.” They sound similar, but they’re actually different.

The barometer tells you that if stocks are up in January, then the rest of the year should be good for stocks, says Sam Stovall, U.S. equity strategist at S&P Capital IQ. It’s a rule of thumb that has proved remarkably accurate. Since 1945, in years when the market was up in January, 84% of the time it continued rallying through the end of the year, with an average additional gain of 11.5%, says Mr. Stovall. See original story here.

Photo by Maddi Bazzocco on Unsplash