Posted 2/13/2024, 9:00:00 PM
High January Consumer Sentiment Predicts Strong Stock Market Returns, New Study Shows
- Study shows jumps in consumer sentiment in January predict higher stock returns rest of year
- Researchers found correlation by analyzing monthly University of Michigan Index of Consumer Sentiment
- Effect held true last year - sentiment jumped in January 2023 and market returned 18.8% after
- Effect even more bullish for 2024 - January sentiment increase was in 99th percentile historically
- Qualifications apply - no indicator is always right, but this one has a good historical track record