Commentary
January lived up to its reputation as a seasonally strong month and year, given the rule: “As January goes, so goes the year.” More importantly, stock selection is especially vital during times of heavy rotation. In January, small capitalization stocks beat large-cap stocks, reflecting a shift to more domestic stocks rather than the big multinational stocks, which dominate the S&P 500. The U.S. is leading global GDP growth, and global money is now rushing into domestic stocks, which helps many small and mid-cap stocks.
