January Effect Update

Posted by Mark Jasayko, CFA, Portfolio Manager

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McIver Wealth Management Consulting Group / Richardson GMP Limited

As we are approaching the end of January, it looks as though, barring a 650 point jump in the Dow before the end of Friday, US markets will be down for the month.

Time to start thinking of the old adage: As January goes, so goes the year.

Since 1973, when January was a negative month, the average return for that year was -2.8%.  Also, a negative January resulted in a negative year 66.7% of the time.

However, when January was positive, the average return for the year has been 16.3%.

 

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