January’s -8.43% total return for the S&P 500 Index was the worst in the history of the index*.
I ranked the ten worst Januarys in the S&P’s history:
This year’s January return was the worst by far. But, that’s just part of the story. Take a look at the next graphic, which shows the annual return that followed the worst Januarys. As you can see, it doesn’t look too good:
Of the nine other worst Januarys, only three of them had a positive return for the entire year. Now before you go and sell everything, keep in mind that I ranked the thirty worst Januarys and 14 of them had positive returns for the year.
If you’re interested, you can read some other posts I put together on this topic:
* The S&P 500 was created in February 1957. Prior to that, it was composed of 90 stocks.