As Goes January, So Goes the Year
The United States surgically removed the Venezuelan dictator in the night and has taken control of that country’s oil. Citizens are engaged in mass protests in Iran. The U.S. President is pressuring the Federal Reserve with lawsuits if they do not lower interest rates. And the stock market has been relatively calm, so far.
Chart of the Week
January has historically been a good predictor for the entire year. If the first week is positive, then the month is usually positive. If the month is positive, then the year is likely to be positive. But what does it mean when two of the largest companies, that have been leading markets higher for years, fail to join that party? Welcome to 2026!
NVIDIA and Apple, the two largest American companies when we entered the year, are surprisingly negative in 2026. This rotation of leadership has been an opportunity. Since October 29th, through January 12th, the following sectors have outperformed the S&P 500: Basic Materials, Financials, Energy, Industrials, Consumer Staples, and Consumer Discretionary. Diversification into small company and international investments also did better in aggregate over the same time.
