CNBC: The 2019 stock market comeback resembles a ‘January effect on steroids’By admin_45 in IN THE NEWS
Excerpt from CNBC quoting DataTrek's Nick Colas:
.... "Investors started this year in a buying mood, pushing up prices of last year’s laggards, which is the logic behind Wall Street’s “January effect,” a theory that there is a seasonal rally in stocks during the first month of the year following a December decline due to tax reasons. This year’s effect was particularly overblown given the magnitude of the fourth-quarter’s sell-off, according to Nicholas Colas,co-founder of DataTrek Research. He said investors shouldn’t buy this comeback.
“Our advice for Q2: forget the last 90 days ever happened. The S&P 500′s 11 percent bounce YTD was basically a January Effect on steroids with a Fed policy change adding gasoline to that fire,” Colas said in a note to clients on Tuesday"....
Read the full article here on CNBC!