From Profit Confidential January 28, 2013 - 12:03pm
The “January Stock Market Indicator” is based on a loose theory that says if the stock market does well in January, it does well for the remainder of the year. While the first half of January was lackluster for the key stock indices, things really picked up in the second half of the month. But this time, the remainder of the year will be different for the key stock indices. Optimism is far too high, a negative factor for key stock indices.
According to a survey done by Bloomberg, international investors are the most bullish about stocks in at least three and a half years. A total of 53% of the respondents to the global poll believe that key stock indices around the world will provide the most return—this number is 17% higher than when the survey was done in November of 2012 and the biggest jump since the survey began in July of 2009. (Source: Bloomberg, January 2013.)
As optimism h...