The stock market declined in January 2015, causing some to ask whether the so-called January effect (or what some call the January barometer) meansthat stocks will fall this year. One of the best known Wall Street adages, “as  January goes, so goes the year,” has a good track record when January is positive, but it is mixed otherwise. Although we always put fundamentals first in trying to forecast market direction, in this commentary we look at January market patterns and posit that the January dip may not be a reason to fret about the stock market in 2015. The so-called January effect, or January barometer, has a strong track record in that positive Januaries for the S&P 500 have preceded positive years 90% of the time since 1950, with an average calendar year gain of 16.9%.

MIXED TRACK RECORD FOR JANUARY EFFECT

The so-called January effect, or January barometer, has a strong track record in that positive Januaries for the S&P 500 have preceded positive years 90% of the timesince 1950, with an average calendar year gain of 16.9%…..

 Dont Fret About January