As January Goes, so Goes the Year -- but Will Trump Follow?
The Wall Street adage 'as January goes so does the year' did not pan out in 2016, but don't dismiss it entirely, says Jeff Hirsch of the Stock Trader's Almanac.
The old Wall Street adage "as January goes so goes the year" did not pan out in 2016, but don't dismiss it entirely, says Jeff Hirsch, editor of the Stock Trader's Almanac. He said abiding by the maxim works more often than not, and it does not "work in a vacuum." The S&P 500 finished 2016 with a total return of 12% despite a more than 5% drop last January. Hirsch added that the so-called "Santa Claus" rally and "January Effect" are working in the market's favor this year. That said, the first year of a newly elected Republican President's administration has traditionally been poor for stocks, so look out for summer selloffs.
