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The Weekly Update 2/09/2024

| February 09, 2024

The Weekly Update 2/09/2024


If you don’t recall reading The Weekly Update for 11/03/2023, you might have missed the three key reasons I suggested the values of Corporate America were about to turn higher quickly.  But you can (read it here).

Rare that I come across a research piece that quantifies historical performance so concisely that it causes you to go, “Hmmm”.  But the piece below from LPL Research on 2/1/2024 does that. 

No one knows the future, yet history has a funny way of repeating itself.  Not exactly, but a shadow of prior times.  I suggest we all sit up and take note of the quantifiable, fact based and source cited chart below.

The doors on the “up in value train” are closing now, and as usual most investors, especially Mr. and Mrs. 401(K) are “watching” from the platform.  Don’t be one of them!


Chart of the Day: January Barometer Turns Positive

Source: LPL Research, Bloomberg 02/01/24
Past performance is no guarantee of future results. All indexes are unmanaged and can’t be invested in directly. The modern design of the S&P 500 stock index was first launched in 1957. Performance back to 1950 incorporates the performance of the predecessor index, the S&P 90.

  • Today’s LPL Financial Chart of the Day highlights how stocks perform after posting a positive January.
  • After a relatively slow start, the S&P 500 rallied during the back half of the month and closed out January with a gain of 1.6%. Buying pressure was relatively narrow as declining shares on the index modestly outpaced advancers. Similar to 2023, a few mega caps did most of the heavy lifting.
  • From a historical perspective, a positive January has been a bullish sign for stocks. Since 1950, the S&P 500 has posted an average annual return of 16.8% during years that included a positive January. Furthermore, the index generated positive returns 89% during these years.
  • In contrast, when the index traded lower in January, annual returns drop to -1.7%, with only 50% of occurrences yielding positive results.

I did not say straight up, and I did not say without volatility, yet the positive economic backdrop, inflation collapsing in on itself, and eye-popping earnings for Corporate America are source based, quantifiable and solid!

These are just more fact based and source cited data points that will keep your WSG Team continuing to add lower risk, lower volatility, and best-of-class investments to our client family’s asset allocations.

I’m interested in your thoughts, comments, and observations.  Feel welcome to call, email, or stop by the office and say Hi.


James O. Lunney, CFP®


Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.