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 In The Lonely Bull

adamently indicisive

The first week of trading is looked upon for clues as to the course of the stock trading year.  However, the correlation is only 50.6%; barely better than the flip of a coin. 

How the full month of January goes is a much better indicator for an annual trend, having a correlation of over 70%.  Even then, 70% plus is no sure thing.  The more important indicator will be what companies report for earnings in the coming weeks and their outlook for the coming year.  Earnings growth is one of the best indicators for future prices.

However, even during good times, markets do go through corrections.  The catalyst usually comes out of the blue and is a surprise to most investors.  That is part of investing and will always be so.  If we do get a correction, Riverplace Capital is ready for it and will try to take advantage of it.  We are always looking for bargains.  We know what we want to own and what companies ought to do the best this year.

 

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