The new year has a rough start. Will it continue? Who knows but historically the beginning of the new year has little impact on what happens for the rest of the year as shown in the following article from Marketminder.com.
- January’s rough start has many investors invoking the old saying, “So goes January, goes the year.
- Statistically, this belief isn’t supported. History shows negative starts can be followed by positive years and vice versa.
- Market volatility is normal, no matter when it happens, and doesn’t mean a prolonged downturn is at hand.
January has commenced with gray weather, record snows, fierce storms, already broken New Year’s resolutions (stupid leftover pumpkin pie), and the usual post-holiday gloom—not to mention a continuance of December’s volatility. Most major market indexes are negative so far this year, leading many investors to invoke the old saw “so goes January, goes the year.” Already, we’re seeing stories highlighting the long and widely held belief that a rough start to January portends trouble ahead.
By Tomoeh Murakami Tse, Washington Post