Hey there!

Welcome to The Investing Authority Newsletter.

Join our savvy investors sharing weekly market forecasts and recaps, delivered straight to your inbox. If you want to stay ahead of the trends be sure to subscribe now and be part of the action!

The Investing Authority specializes in helping companies enhance their visibility within the investment community through marketing, advisory, and partnership services. See more Here.

The Santa Claus Rally and January Barometer 🎄

In market media, certain phrases gain popularity and dominate discussions for weeks, such as "sell in May and go away" or "September seasonality." Recently, two phrases have been especially prominent: the "Santa Claus Rally" and the "January Barometer."

The Santa Claus Rally refers to the market’s tendency to rise during the last five trading days of the year and the first two of the new year. While this year’s rally has yet to deliver, there’s still time for a potential turnaround.

The January Barometer claims that the market’s performance in January predicts whether the year will end positive or negative. Many commentators point to it as a meaningful indicator of future returns.

However, data shows both are unreliable. Over the past seven years, the Santa Claus Rally has been wrong 3 out of 7 times in predicting annual returns, as has the January Barometer. Their predictive accuracy is essentially no better than a coin flip.

While these phrases are entertaining and widely discussed, they should not be taken as reliable indicators of future market performance. Use them for context, but rely on more robust data for decision-making.

Have a wonderful week!!

Top ETFS on our Radar… 📈

The Vanguard Total Stock Market ETF (VTI) offers exposure to the entire U.S. equity market, including large-, mid-, small-, and micro-cap stocks. It provides broad diversification with low costs, making it a core holding for long-term investors.

Tune in every Monday and Friday for in-depth Market Analysis, Recaps, and a featured Stock & ETF.

Thanks for reading and have a great week!

-Ryan

@Theinvestingauthority