FTSE - best January since 1989

So, the FTSE100 ends January with a performance of over 6% for the month, the best for over 20 years. The FTSE250 has also been going well, even though it reflects more closely the UK economy and much of the economic news for the last month or so hasn't been that hot to perhaps justify such a move. Nevertheless, history suggests that a good start in January is often a good sign for the rest of the year as originally mentioned in this post.

Here is some further evidence;

Fidelity Worldwide Investment has analysed the performance of the FTSE 100 since it started in 1984 and found that stock markets have risen in the first month of the year in 17 out of 29 years, with this year likely to make it 18 out of 30.

Most interesting for investors is the fact that in all but three of the 17 years equity markets have continued to grow in the 11 months following a positive January, suggesting that there really might be something to the January Effect. 14 out of 17 is an 82% success rate.

http://www.morningstar.co.uk/uk/news/105294/An-80-Chance-of-a-Positive-Market-in-2013.aspx

The markets will pause for breath at some stage and perhaps we are beginning to see that today, but increasingly evidence suggests that the home for all that new money that has been created may be the stock market going forward.