The January Barometer: Myth And Reality by Jay Kaeppel
ARTICLE SYNOPSIS ...The January Barometer: Myth And Reality by Jay Kaeppel
Some claim the January Barometer is a great forecasting tool, while others say it is totally without value. As usual, the truth lies somewhere in between.
First, let's define exactly what the January Barometer is. Originally, the theory behind the January Barometer was that ""as January goes, so goes the year."" If the market closed January with a gain, the market should close that year with a gain. Conversely, if January was down, then the year as a whole should be down. For our purpose of attempting to use the January Barometer as an a...