what is the january barometer 
the january barometer also called the other january effect is a folk theory of the stock market claiming that the returns in january will predict the stock market s overall performance for that year thus a strong january would predict a strong bull market and a down january would augur a bear market actual evidence for this effect is scant 17the bottom linethe january effect is a market theory suggesting that january often has consistent gains though the evidence for it has been elusive in recent decades despite this market commentators frequently cite it to explain any positive performance in january they often link january s buying activity to post year end tax loss sales however the relevance of this rationale has greatly diminished over time as more investors shift to tax sheltered plans like 401 k s traders are advised to approach the january effect skeptically and focus on the prevailing market conditions as the year turns rather than relying on this increasingly questionable market lore 