Happy New Year! Do we want to play this year?
Pick of The Year (PoTY) 2016
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Here is part of a 2014 article in Forbes.
... there is another group of people who advocate that just the first five trading days of January are predictive of the rest of the year. We took data from 1950 through 2013 for the S&P 500 Index and then calculated both positive and negative results on a weekly and monthly basis.
For the 64 years from 1950 through 2013, a positive return in January was predictive of a positive return for the year 92.5% of the time. A positive return during the first five trading days of January was predictive of a positive return for the year 90.0% of the time.
A negative return in January was predictive of a negative return for the year 54.2% of the time — basically not predictive at all. A negative return during the first five trading days of January was predictive only 50% of the time, amounting to nothing more than a flip of a coin.
Tim - Retired Problem Solver
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