Keyword: January Barometer

Is a popular stock market theory that holds as January goes for the stock market, so goes that year. Interestingly, the theory seems to hold more frequently for years with a strong January for the markets rather than years with a poor January market. Historically, of course, stocks have a long-term propensity to rise so an up January is inherently confirmed by an up year while a down January is proven wrong as an indicator simply because of the long-term nature of stocks to rise. There is an undeniable historic pattern supporting this theory but the cause of it can only be guessed at. And it may be nothing more than an historic anomaly. To base investing decisions on it would border more on superstition than acuity.

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Time to Think Big

At first glance, it appears that small stocks do much better than big stocks.

But look closer and both groups do about the same most of the time.

From 1926 through 2006,   Read More