Thursday, January 8, 2009

Bursting the "First Five Days of January" Myth

Every year, I hear the pundits on the various business channels perpetuate the debate about whether the first five days of January will be a predictor for the rest of the year. Mark Hulbert, who has spent his journalism career studying such phenemenons as indicators and especially market-sentiment indicators, wrote this piece today:

"...You can make no rational bet about the market's direction in 2009 based on how the stock market performs in the first five days of January."

Here is his article.