By JLP | February 1, 2013
So, we had another January with a positive return. This January, the S&P 500 had a total return of 5.18%.
You have probably heard about the January Effect. Basically, it means what happens in January usually foreshadows what will happen for the year. I decided to look back at the returns I have to see if there was any truth to the saying. The findings were interesting.
Of the 87 years that I have data on (not including this year), I found that there were 55 years with a positive January.
Of those 55 years, 46 of them (roughly 84%) had positive returns over the next 11 months.
Here’s another way to look at it: