From Frank Holmes of U.S. Global Investors:
If you've been a hibernating bear lately, you've missed a ton of positive news, as U.S. construction spending rose, ISM manufacturing data beat expectations, and the country added 157,000 jobs. In addition, the JP Morgan Global Purchasing Managers' Index rose to 51.5, staying above the expansion level for a second month in a row. The strengthening data, as well as improving investor sentiment, helped the Dow hit 14,000 for the first time since 2007.
For the month of January, U.S. stocks experienced the best month in two decades. Per the Stock Traders' Almanac market indicator, the "January Barometer," the performance of the S&P 500 Index in the first month of the year dictates where stock prices will head for the year.
Let's hope so. As Adam Shell from USA Today writes, "While there's no guarantee that what happens in the first month of a new year will continue for the remaining 11 months, history is on the side of investors."
Shell asked for my thoughts on this trend and I told him that sentiment has improved in part because several uncertainties have been removed from the market...
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