It was a forgettable January for the market. The S&P dropped 8.6 percent. In fact, no January has been worse.
Bad Januaries have historically preceded bad years. But how about the next month? Over the last eight decades, the market has gone down 18 out of 81 times in February. Overall, the median return has been 0.1 percent.
src=”http://www.investorsdailyedge.com/Issues/Charts/February%202009/02-10-09-Tuesday%20-%20IDE_clip_image002.jpg” border=”0″ width=”499″ height=”335″ /> Source: Ritholz.com (The Big Picture)
But when the market has gone down in January, the return for February is worse – a negative 1.8 percent.
After the first week of February, the S&P is up six percent. If this month hues to its historical averages, the rest of the month is going to be a big downer.
After earning his Masters from the London School of Economics, Andrew has enjoyed a 25-year business career that has taken him around the world. He’s been involved in infrastructure in Indonesia, port development in Russia, road construction in Malaysia and environmental services in China. He’s also authored six books on the global markets, including China’s Oil and Gas Industry, and The World Coal Market.
Andrew has spent his entire career evaluating companies and appraising investments and he is a proponent of the idea that a healthy portfolio is not dependent on flourishing markets. He specializes in identifying deep value companies with a solid margin of safety as well as income investments with a strong potential for capital gains. He has also become a leading expert in utilizing Exchange Traded Funds (ETFs) to profit from rising and falling market sectors.
Andrew is currently the Editor-in-Chief of three monthly investment research services – INCOME,Red Flag Insider, and The Wealth Advantage. He resides in Delray Beach, FL and Catonsville, MD, with his wife and two children.
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