Friday's massive sell-off ruins January barometer market signal

[Yo_Mama_Been_Loggin]

The stock sell-off deepened on the last day of January on concerns that the deadly coronavirus will disrupt the global economy and in the process, ruining an old market indicator that was signaling a positive year.

As goes January, so goes the year: This Wall Street saying from the widely watched "January barometer" suggests a correlation between January's performance and full-year returns.

Going back to 1950, when the S&P 500 was positive in January, 86% of the time the full year turned out to be up with only ten major errors through 2019, according to Stock Trader's Almanac who identified the seasonal signal.

The track record is even better in presidential election years. Since 1928, when January is up in an election year, the year is up 100% of the time with an average S&P 500 return of 16.6%, according to Bank of America.

https://www.msn.com/en-us/money/markets/fridays-massive-sell-off-ruins-january-barometer-market-signal/ar-BBZwtBt?li=BBnb7Kz

[leftieNanner]

1. I really don't want my little retirement nest egg to go kablooey

But if it means that Trump is dumped in November, I'll make it work.

[Blue_true]

2. What was the rationale for the drop, did someone pass gas on the trading floor?

It all seems so contrived at this point, any little thing swing the market.

[lunatica]

3. The Coronavirus will mess up the economy.

Or so they say.

[Blue_true]

4. Not one person that showed up in a country that has a first rate

healthcare system has died.

You know what is going to kills the economy this year? The Orange Butt virus that is squatting in our White House.

[lunatica]

5. They really think we're stupid

Trump is on trial in the US and Brexit went into effect today which will play havoc financially, but they’re telling us it was the Coronavirus.