 |
| First Day of Trading for January |
Today marks the first trading day of January. Traditionally, the market has reacted very positively to the first day of the month over the course of the last 25 years. There is generally one good reason for this in that 25 years ago defined contribution plans were started and many fund managers and individuals put money to work on this day. This theory has mainly played itself out during periods of uptrends in the market rather than in downtrends. Quite simply, an uptrend is defined as a close above the 200 Day Moving Average for the S&P 500 while a downtrend is a close below.
As things stand right now, the markets are up quite nicely. Remember, past performance is no guarantee of future results.
The S&P 500 is an unmanaged index. Investors cannot directly invest in an index.
Eric Marvin, CFP®, CRPC®
JPT010312-005
