The FTSE 100 has continued its impressive gain since the start of the year, but will it continue? Well if you are a believer in history then it will continue.
Research from Fidelity has shown that in 14 out of the 17 times (82%) the FTSE 100 has risen in the first month of the year since 1984, the index has continued to rise throughout the year.
If history is anything to go by, then is may suggest to investors that they should keep hold of their equities rather than sell. However, as we all know – past performance is no guarantee of future performance.
Tom Stevenson, Investment Director at Fidelity Worldwide Investment, comments: “January has got off to an excellent start for investors, with the FTSE 100 breaking through the high point of just under 6,100 reached in 2011 and moving safely back into pre-financial crisis territory.
“I’m pretty sceptical about these kinds of rules of thumb, but it is hard to ignore the evidence that a positive January has led to further rises more than 80% of the time during the past 30 years.”
