As we close out the first trading month of 2013 on a positive note, some investors may be wondering about the January Effect when it comes to the equity markets. The January Effect is simply looking at how the rest of the year performs vs. how the actual month of January performed. Not very scientific but nonetheless the data according to this
Barron's article shows the DOW has better shot of staying in the positive than if January was a down month.
It goes with out saying, we would not make investment decisions based upon this data point alone.
January Barometer
| Dow in January is… | % of time Dow rises from February through December | Average Dow gain from February through December |
| Up | 73% | 7.68% |
| Down | 52% | 3.78% |
| All years in sample | 66% | 6.27% |
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