Robert Nabloid

The January Effect: Small Caps Outperform After Really Bad Years

I no longer follow "historical" trends like this. You want to know why? The last trend I was told about was that markets go up in election years... I assume it is due to the politicians promising the world to everyone... but we know how well this year went despite it being an election year.

In January I'm expecting a lot of layoff notices and pink slips to be floating around.

But small caps are the place to be. If any company is small and nimble enough to do well in an economic climate like this, it would be a well run small cap.