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
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