As January goes, so does the rest of the year. That according to the fairly accurate ‘January Effect‘. Since Democrats have been pointing the the Stock Market as an indicator of the economy improving, this may be a very, very bad year for Liberals in the 2014 election. The Dow Jones Industrial Average (DJIA) has lost 5% during the month of January.
The January Effect has just over 82% accuracy. Yes, it’s a very, very bad year. Get ready for the White House to proclaim they never said he Stock Market was an indicator of the Obama policies improving the economy.
Oh, and just for giggles, this is what the January Effect predicted for 2013
Stocks dropped sharply during the first month of the year, with the Dow tumbling more than 5%. That was the Dow’s worst January since 2009, when stocks were still in freefall in the aftermath of the financial crisis.
The S&P 500 slipped more than 3% this month, while the Nasdaq has shed nearly 2%.
Stocks have been hit particularly hard during the past two weeks due to emerging market worries and weak earnings.
As stocks continued to lose ground, CNNMoney’s Fear & Greed index, which measures seven indicators of market sentiment, fell further into “Extreme Fear” mode.
Read the rest at CNN Money