January effect

James Mackintosh

Old stock market wisdom has it that as goes January, so goes the year. As with “sell in May”, “run your winners” and so many others, there is some truth in the saying: in 62 of the last 85 years the US market has moved the same direction in January as in the full year ahead.

On the other hand, the first day of trade is irrelevant, as Howard Silverblatt at S&P Dow Jones Indices points out.