This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

January as Market Barometer, So Get Used to It

NEW YORK (The Street) --- "So goes the first week of January, so goes the month, and so goes the year."

Investors will be hoping the old adage does not hold true for 2014, with the S&P 500  down around 1% from its closing levels last year.

There are reasons for optimism. Traders note that delayed tax-related selling may have pressured stocks early in the new year after 26% gains for the index in 2013. They also point to uncertainty around the Federal Reserve's tapering plans and fiscal concerns as feeding caution in the first half, with expectations for a stronger second half.

In 2008, a bad January was certainly a bellwether. The index fell 4% in the first week of that year, leading to losses of 38.5% for the S&P 500. Yet statistically, the adage is hit-and-miss: over the past 23 first weeks of a year, calendar year declines have followed just 48% of the time.

Most fund managers expect single digit gains for U.S. markets this year as the global economy continues its recovery.

Healthcare, technology and industrials are the most favored sectors while bond-like stocks such as telcos and utilities are expected to suffer against a rising rate backdrop. Pundits remain cautious on emerging markets, but favor select economies in Europe and the Japanese sharemarket with its ongoing stimulus support.




-- By Jane Searle in New York 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,127.12 +75.39 0.44%
S&P 500 1,984.75 +11.12 0.56%
NASDAQ 4,458.8680 +34.1640 0.77%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs