Of the many January indicators that investors look to for clues about the stock market’s direction, just one is statistically significanct. Fortunately, this indicator is bullish for the remainder of 2026.
This lone January-based indicator with statistical significance is known as the January sentiment effect. The JSE points to increased stock-market returns from February through December when consumer sentiment in January is higher than it was in the prior month. Two researchers, Zhongdong Chen of the University of Northern Iowa and Phillip Daves of the University of Tennessee, reported this finding in the
This powerful economic indicator is sending a clear message about stocks for 2026
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Of the many January indicators that investors look to for clues about the stock market’s direction, just one is statistically significanct. Fortunately, this indicator is bullish for the remainder of 2026.
This lone January-based indicator with statistical significance is known as the January sentiment effect. The JSE points to increased stock-market returns from February through December when consumer sentiment in January is higher than it was in the prior month. Two researchers, Zhongdong Chen of the University of Northern Iowa and Phillip Daves of the University of Tennessee, reported this finding in the
October 2018 issue of the International Review of Financial Analysis, based on an analysis of the 40 years from 1978 through 2017.
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