After a very impressive start, what will the remainder of January look like? Here’s a look at the seasonal patterns as the winter season settles in:
Key bit from LPL Research: The information technology, healthcare, utilities, and consumer discretionary sectors have on average tended to exhibit the highest relative strength. However, if you are interested in looking under the hood for a more targeted strategy, out of the top 10 industry groups, you may want to consider the information technology, consumer discretionary, and healthcare sectors as they have represented seasonally strong breadth for select industry categories in the month of January over the period analyzed. As we start 2018, we can shift our thoughts away from the frigid temperatures to the warmth of the equity markets. But should stocks hit a cold spell this month after a hot start, let us warm up to the seasonal statistics that we tend to see in January—as well as the possibility that it could be a good time to consider implementing this type of analysis as part of your portfolio management plan.