February 4, 2022 | Investment Review

Investment Review - February 2022

  1. The January Effect, a hypothesis that the month of January is a good month for the stock market, was not in effect this year. January 2022 was the worst January since 2009, with the S&P 500 down 5.3%. This included the last day of the month when that index was up 1.9%. Over the last twenty years, there have only been six times when the S&P 500 lost more than 3% in January. All of those years were back to positive for the year by May at the latest, except 2008.

  2. Technology stocks were especially feeling the pain in January, with the Nasdaq Composite, a composite heavily tilted towards Information Technology stocks, down 9% in January.

  3. Since 1980, 32 of the last 42 years had positive annual returns for the S&P 500, despite having intra-year drops, averaging 14%.

  4. Trading volatility was also a highlight in January with some intraday swings hitting 6%.

    Key Investment Statistics

    key investment statistics chart for february 2022

Sources: FactSet, Wall Street Journal, U.S. Census Bureau, U.S. Bureau of Labor Statistics, Barron’s

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