January: 6 things investors need to know
USAToday 3:39 p.m. EST January 5, 2015
Revelers cheer under falling confetti at the stroke of midnight during the New Year's Eve celebration in Times Square.(Photo: John Minchillo, AP)
It's the same big question at this point every year: Will 2015 be happy for stocks?
The Standard & Poor's 500 index — the stock market benchmark — is coming off its third straight year of 10%-plus gains.
The bull market is bearing down on its sixth birthday.
Investors can't help but wonder if the party is about to end.
1. January effect.
January could provide the answer, because how stocks do during the month has historically been a reliable indicator of how the year will play out.
FULL STORY: 'Getting off to a good start is always important'[1]
Some analysts say that sticking with stocks that have already gathered momentum could be a winning strategy.(Photo: Jupiterimages, Getty Images)
2. Momentum matters.
In terms of individual stocks, some analysts say that letting 2014's winners ride could turn out to be fruitful in the new year because the forces that lifted groups such as health care won't be going away anytime soon.
FULL STORY: Biotech's big surge continues[2]
Traders work on the floor of the New York Stock Exchange.(Photo: Jewel Samad, AFP/Getty Images)
3. Fund surprises.
Mutual fund investors also can learn a thing or two from 2014. The winning categories were the ones almost nobody predicted would shine because few thought interest rates would fall as much as they did.
FULL STORY:Mutual head scratching over S&P 500 bigger gains[3]
4. Crude price keeps slipping.
Speaking of the drop nobody saw coming, the 46% plunge in price of crude last year singlehandedly created groups of winners and losers. The possibility that oil could fall even more in 2015 means there are several categories of exchange-traded funds that offer a way to try and profit from any further decline.
FULL STORY: 3 low-oil ETF plays[4]
The iPhone 6 plus, left, and iPhone 6 are displayed in Cupertino, Calif.(Photo: Marcio Jose Sanchez, AP)
5. Tech check.
In the technology space, five of the big kahunas report earnings this month and will give a snapshot on the health of different parts of that resurgent part of the market.
FULL STORY: An iPhone 6 sales record?[5]
Outside the Nasdaq exchange in Times Square.(Photo: Andrew Burton, Getty Images)
6. Nasdaq nudges higher.
And on that resurgent tech stock market. The Nasdaq composite enters the year at levels not seen since the go-go days of the 2000 bubble. But a number of cutting-edge companies that now create the most buzz are also those that expand economic value by creating new markets. So this time, things really might be different.
FULL STORY: The power of viral fuels today's tech stars, Trish Regan says[6]
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References
- ^ http://experience.usatoday.com/story/money/markets/2015/01/04/january-market-outlook/20996253/ (experience.usatoday.com)
- ^ http://experience.usatoday.com/story/money/markets/2015/01/04/stocks-january-look-promising/20503525/ (experience.usatoday.com)
- ^ http://experience.usatoday.com/story/money/2015/01/04/best-funds-went-from-mild-to-wild/21188131/ (experience.usatoday.com)
- ^ http://experience.usatoday.com/story/money/markets/2015/01/02/etfs-oil-economy-investing/21119471/ (experience.usatoday.com)
- ^ http://experience.usatoday.com/story/tech/2015/01/02/january-tech-stocks/20807561/ (experience.usatoday.com)
- ^ http://experience.usatoday.com/story/money/markets/2015/01/03/trish-regas-uber-airbnb-cmgi-tech-stocks/21192283/ (experience.usatoday.com)