An 80% Chance of a Positive Market in 2013?

PERSPECTIVES: The FTSE 100 gained 6.4% in January, implying there's an 80% chance of a positive market trend in 2013, explain Fidelity Worldwide Investment

Fidelity International 31 January, 2013 | 5:32PM
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Morningstar's 'Perspectives' series features guest contributions from third parties such as asset managers, academics and investment professionals. The below article was written by Fidelity Worldwide Investment.

Investors who bought into equity markets at the end of December in the belief that they could benefit from a ‘January Effect’ made the right decision this year,  with the first month of 2013 looking like it will be the best January since 1998.  The January Effect is sometimes described as a tendency for share prices to rise in January as a result of increased buying following a drop in price that typically happens in December.  Another version of the January Effect claims that when shares rise in January the odds are stacked in favour of them rising during the remaining 11 months of the year.

The big question for investors now is whether this year's strong performance can continue for the rest of 2013, or whether now is the time to sell equities in favour of perceived safer havens?

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Fidelity International

Fidelity International  

is a global leader in asset management, providing investment products and services to individuals and institutions in the UK, continental Europe, the Middle East and Asia Pacific.