Will The Stock Market Keep Skyrocketing? [AUDIO]
Don't look now, but the financial markets have been surging since the beginning of the year, and many experts expect the trend to continue for the remainder of 2013.
Chris Cordaro, the Chief Investment Officer for Regent Atlantic Capital, says, "It is documented and it does happen that if January is a good month, then the rest of the year is likely to be good as well. If the year starts off with people's sentiment high - that they believe the market is going to do well, it becomes a self-fulfilling prophecy."
Since 1950, the so-called "January Barometer" has registered only 7 major errors. The last time was in 2001, when the S&P was up at the start of the year, but wound up down 13 percent 11 months later.
Cordaro says there are many encouraging signs right now.
"We're starting to see the individual investor come back into the market, we're starting to see flows into stock mutual funds increase - and that's an indicator that the average person is starting to buy stocks again. There are so many investors that are on the sidelines in cash and bonds, and that's just the wrong place to be right now, so I think we're likely to see that momentum going throughout 2013."
He adds, "We're off to the best start in the market this January than we've had since 1989. That was the last time it was this strong in January - in 1989 the market was up 31 percent, so, of course, you can't guarantee that's going to happen. But I think if we continue to see investors put money in stocks we'll likely see a very healthy year for stock returns…If I was an investor who was on the sidelines in cash, or in long term bonds, I would be very scared- I think that now is the time to take action for those folks…If you wait too long, you are going to miss the upward turn in the market."