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


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
©2004-2016 Investor Glossary - All rights reserved - Terms of Use