January as a Market Indicator for the Rest of the Year
Markets have gotten off to a strong start in 2018. Some say, as January goes, so goes the year. We discussed the popular investment theory with Brian Isabelle, Trading Strategy Desk Representative at Fidelity.
Past performance is no indicator of future results, but proponents of the "January Barometer" strategy think momentum from a positive January could set the tone for the rest of the year. Isabelle points out that this indicator has a 75% accuracy ratio since 1950, according to the 2017 Stock Trader's Almanac. Through his analysis, Isabelle explains that sometimes the theory works and sometimes it doesn't.
January is more likely to be an indicator for the rest of the year when the month finishes positive, according to Isabelle. He says one of the reasons for this could be momentum. If the market gets off to a good start, it could form a bullish trading pattern.
Oracle soars as it cashes in on the AI boom, Plus: Starbucks shares continue to fall under its new CEO, and does anybody actually want a new iPhone Air?
Swedish buy now, pay later company Klarna is making its highly anticipated public debut on the New York Stock Exchange Wednesday, the latest in a run of high-profile initial public offerings this year. The offering priced at $40 Tuesday, above the forecasted range of $35 to $37 a share, valuing the company at more than $15 billion. The valuation easily makes Klarna one of the biggest IPOs so far in 2025, which has been one of the busier years for companies going public. Other popular IPOs so far this year include the design software company Figma and Circle Internet Group, which issues the USDC stablecoin..
Oracle co-founder Larry Ellison wrested the title of the world’s richest man from longtime holder Elon Musk early Wednesday as stock in his software giant rocketed more than a third in a stunning few minutes of trading. That is according to wealth tracker Bloomberg. A college dropout, the 81-year-old Ellison is now worth $393 billion, Bloomberg says, several billion more than Musk, who had been the world’s richest for four years. The switch in the ranking came after a blockbuster earnings report from Oracle. Forbes still has Musk as the richest, however, valuing his private businesses much higher.
