, Columnist
January Barometer's False Readings
As January goes, so goes the market for the rest of the year, at least according to the old adage. It turns out to be wrong as often as right.
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"As January goes, so goes the year?"
That is the pithy version of the January Barometer. First identified by Yale Hirsch of the Stock Trader's Almanac, it suggests a correlation between January's performance and full-year returns. I am not a believer in the many omens Wall Street traders tend to obsess about, including the January Barometer. However, this one is more interesting than most.