The January Effect

Feb. 04, 2025 12:45 PM ET
(3min)

Summary

  • It is stated that if the month of January is positive for the market, so goes the rest of the year.
  • Outperforming the capitalization-weighted S&P 500 Index was the Equal Weighted S&P 500 Index, returning 3.43% for the month, compared to the S&P 500 Index return of 2.78%.
  • In addition to broadening performance across other U.S. equity segments, over the last two months, international equities have outperformed their U.S. counterparts.

Currency and Exchange Stock Chart for Finance and Economy Display

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With the month of January now behind investors for 2025, one mantra surrounding future stock market performance is known as the January Effect. Broadly, it is stated that if the month of January is positive for the market so goes the

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HORAN Capital Advisors is an SEC registered investment advisor that manages investment portfolios for individuals and institutions. Our firm utilizes a disciplined investing approach that should create wealth for our clients over time. Our investment bias is to invest in companies that generate a steady return over time, i.e., singles and doubles. This singles and doubles approach tends to lead to investments in higher quality dividend growth/cash flow growth companies. On the other hand, there are times when a company's stock price seems to be trading below its fair valuation. Short term gains are possible in these situations. I have been managing investment portfolios for individuals and institutions for over fifteen years and believe investing is like running a marathon and not a sprint. Taking the road less traveled, more often than not, leads to higher returns. Visit: The Blog of HORAN Capital Advisors at (https://horanwealth.com/insights/market-commentary-blog)

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