As Goes January…
In the November 2006 Journal of Financial Economics Cooper, McConnell and Ovtchinnikov examine whether investment returns in January have predictive power over returns for the subsequent 11 months. Between 1940 and 2003, when the market-weighted portfolio is positive in January returns for the remainder of the year have averaged 14.8% and when January returns were negative the remaining 11 months returned an average of just 2.92%.
The authors find no explanatory value from business cycle variables, presidential party affiliation, or consumer sentiment. Further, the results occur independently of other recognized factors such as portfolio weighting, market capitalization or valuation.
For more information, see all articles on: FInancial Planning, Investing in Stocks, Investment Returns, Personal Finance, Portfolio Management, Research See also:
The Intelligent Investor: The Classic Text on Value Investing
Financial Statement Analysis: A Practitioner's Guide, 3rd Edition
Managing Investment Portfolios: A Dynamic Process (CFA Institute Investment Series)
