Julius Baer bullish despite January Effect

Julius Baer remains bullish on equities despite the January Effect suggesting otherwise, says Christoph Riniker, head of equity strategy at the bank.

“As January goes, so goes the year” says the rule. The S&P500 lost 12 points in January, the first decline for the month since 2010. Backtesting by Julius Baer for US and Europe stocks for 1965-2013 shows a 70% reliability for the January Effect but despite this, Riniker says overall fundamentals support a positive year for stocks.

January Effect