A Review Of The Stock Market 'January Effect' Since 1928

According to the popular stock market January Effect, “As goes January, so goes the year.”

And the S&P 500 soared 5 per cent in January.

“In sum, since 1928, when the S&P 500 has risen in January, it’s climbed an average of 8.3% for the next 11 months and was up over that span nearly 78% of the time,” writes Charles Schwab’s Liz Ann Sonders. “When the S&P 500 has fallen in January, it’s risen only 58% of the time for an average of only 2.8%.”

Here’s the table and chart from Sonders:

stocks

 

stocks

Photo: Charles Schwab

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.