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RFM Financial Solutions, LLC

Is the January Effect Real?

A-Color-Coded-Look-at-the-SP-1926-2012

In January, the market had a positive return.  The January Effect means what happens in January usually foreshadows what will happen for the year.  We found this fun diagram that shows the Monthly Totals in color coded form.  Of the 87 years that is listed on this chart, 55 of the years had a positive January.  Of those 55 years, 46 of them (about 84%) had positive returns over the next 11 months.

Here is to a positive 2013!

 

 
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