Every January, traders and market enthusiasts look to the first month's performance as a potential crystal ball for the year ahead.

The 'January Barometer' and the 'January Effect'—two staples of market lore—suggest that January holds predictive power over the entire year's stock market trajectory.

But while these ideas are catchy, investors may find more reliable gains by focusing elsewhere.

The January Effect And Barometer: A Closer Look

The January Effect refers to a historical trend where stocks tend to rise during the month of January. This phenomenon is often attributed to year-end tax-loss harvesting...