January Barometer

January Barometer

A theory stating that the performance of the S&P 500 in January predicts its performance for the remainder of the year. That it, if the S&P ends January higher than it began, there will be a rising stock market and vice versa. Investors using the January barometer make investment decisions based on this performance; they buy S&P 500 stocks when performance is strong in January and sell when it is not. The January barometer has had mixed results over the years.
References in periodicals archive ?
I work on the January barometer, the theory that as January goes, so does the year.
1% in the 12 months preceding March 2004, while the January barometer of SKV predicted a rise of 4-5% in 2004, reported the Finnish news agency STT.
The Incredible January Barometer (Devised 1972): Only Five Significant Errors in 59 Years.
Based on the January Barometer, which maintains "as goes January, so goes the year," this bodes well for the market's prospects.