January Barometer Broken, But That's Probably A Good Thing

January Barometer Broken, But That’s Probably A Good Thing by John Dorfman, Dorfman Value Investments

Winter storms have been raging, not only in the weather, but in the stock market. So, naturally, all eyes are on the barometer.

The January barometer in the stock market is the theory that “as January goes, so goes the year.” Since the first two weeks of January were the worst on record, that is a frightening thought.

However, investors may take some consolation from the fact that the January barometer theory is flawed. Here are the five worst Januarys on record before this year, and the stock-market performance for the full year, measured by the Standard & Poor’s 500 Index.

• 2009 — January performance: -8.6...
  

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