With the stock market down significantly Monday – the S&P 500 ended down 31 points yesterday, its worst start since 2008 – and pre-market futures pointing to soft opening on Tuesday of a new year, Bank of America Merrill Lynch’s Equity and Quant Strategy team was out with a report dated December 30 that explained why the January effect is less likely to occur in 2016, bolstering their quant thinking with fundamental logic. January effect won’t lift stocks in January, underlying fundamentally-driven ratios tell Bank of America Merrill Lynch The January effect typically lifts stock prices during the month as…
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- January effect won’t lift stocks in January, underlying fundamentally-driven ratios tell Bank of America Merrill Lynch
- January Effect - Earnings have always been a fundamental performance driver inside a value investing strategy, and BAML's report points to sector selection
- January Effect - Earnings are driven by sales but why isn't corporate guidance following suit with sales and earnings ratios?
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