Gloomy January bodes ill for equity investors
NEW YORK: The adage "as January goes, so goes the year" bodes ill for equity investors after the S&P 500 closed out its worst month in almost a year. This week, they will have to contend with fears of sovereign defaults and potential unpleasantness in the US labor market as well.
US corporations have so far handily beat analysts' earnings forecasts. With heavyweights like Exxon Mobil Corp and United Parcel Service Inc set to report this week, investors will be looking for that to continue, going some way to offset the perception that political risk is on the rise.
The Standard & Poor's 500 Index fell 3.7 percent in January and is off nearly 7 percent from its high this month. Currently, investors are worried that Greece's debt troubles may herald a wave of sovereign defaults in the euro zone that could derail an economic recovery.
