Investor Glossary-january barometerInvestor Glossary-january barometerInvestor Glossary-january barometerInvestor Glossary-january barometerInsightful stock market charts - Click here
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

January Barometer

The HTML to link to this page

The January Barometer is a theory that states that if the S&P 500 is up in the month of January, the stock market will be up for the remainder of the year as well. In other words, the January Barometer uses the first month of the year as a forecasting tool for the entire year. According to the Stock Traders Almanac, the January Barometer has been relatively accurate in its predictions. For instance, from 1950 to 2003, the S&P was up in January 34 times - 30 of which the January Barometer correctly predicted ended up trading higher. Based on that, the January Barometer has an 88 percent success rate. Despite that track record, some investors feel the January Barometer is a myth not to be trusted or treated as fact. Many factors can affect the January Barometer, such as a new presidential year. With so many contributing factors, the January Barometer, some argue, is best when "taken with a grain of salt." Supporters of the January Barometer adopt Yale Hirsch's infamous phrase, "As January goes, so goes the year."

Rate this January Barometer definition...

Learn about investing with the Investor Glossary Term of the Day

Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.

Popular Terms: covered put, risk management, average price per share, deferred tax, dividends payable, retained earnings, 144a, 1031 exchange, diluted share, reverse mortgage, class C shares, inflation, Zero Cost Collar, FICO score, stock split, ex-dividend, quality assurance, in escrow, limit order, phantom income, annual return, 1035 exchange, APR, irrevocable trust, option premium, deferred revenue, VIX, Key Rate Duration, 401a, real GDP, EBITDA, LIBOR, margin rate, current ratio, stock market close, cancelled check, ex-dividend date, balance sheet, liquidity ratio, required rate of return, FTSE, labor relations, wholly-owned subsidiary, implied volatility, per diem, command economy, debt service coverage, open position, minority interest

Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use