Your Retirement Plan Doesn’t Care About January

Have you heard of the “January Indicator” or “January Barometer?” This theory suggests that the price movement of the S&P 500 during the month of January may signal whether that index will rise or fall during the remainder of the year. In other words, if the return of the S&P 500 in January is negative, this would supposedly foreshadow a fall for the stock market for the remainder of the year, and vice versa if returns in January are positive.

 

I’ve heard this for years.  And I can remember early on in my career probably giving it too much attention.  After all, the financial news loves soundbites, and this was one that could grab viewer’s attention as we wonder about the upcoming year.  But what does the evidence show us? Have past Januarys’ S&P 500 returns been a reliable indicator for what the rest of the year has in store?  More importantly, should we care or worry about it? > SEE MORE

Waypoint Wealth Management

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Waypoint Wealth Management