IBD: "Can Stocks Keep Soaring In 2021? Just Look At The Past Five Days"

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IBD: "Can Stocks Keep Soaring In 2021? Just Look At The Past Five Days"

Excerpt from Investor’s Business Daily quoting DataTrek’s Jessica Rabe:

…. “There’s an old Wall Street adage that the stock market’s performance during the first five trading days or month of a year can predict whether the entire year will turn out good or bad,” said Jessica Rabe, co-founder at DataTrek Research. “The thinking goes that a positive first week or month of trading usually leads to a positive annual performance, or vice versa…

….But looking at early-year trading has statistical factors in its favor, Rabe says. “The S&P is up the first five days of trading during most years, and produces over double the annual return of years when it was negative during the first week of trading,” she said.

So, it’s understandable if a good start to January makes you feel better about 2021. “This concept is not bulletproof, but history shows a positive performance for the S&P in January tends to lead to a much stronger performance for the year overall,” she said”….

Read the full article here on Investor’s Business Daily!