Stocks got off to a nice start in 2021, until the late January selloff, as everyone got GameStop fever. Should bulls worry about what a down January might mean for the rest of 2021?

There’s an old adage on Wall Street that suggests, “As goes January, so goes the year.” This was first discussed in 1972 by Yale Hirsh of the Stock Trader’s Almanac, and it has an impressive track record.  Simply put, when the first month of the year was green, it bodes well for the rest of the year (and vice versa). Given stocks closed red in January, how worried should investors be?

As shown below in the LPL

Index Performance

US and International Equities

The major market indexes finished the week lower with all averages down over 2%. Small caps, which have been a bright spot in recent months, also pulled back 2%. In addition, both the MSCI EAFE and Emerging Markets (EM) international markets followed the US markets lower this week.

Real Estate Holds Ground While Most Sectors Sell-Off

All major market sectors sold off this week with the materials and energy sectors lagging all, pulling back over 4%. Nevertheless, energy is still the top performing sector year-to-date with a 6% gain.

“In the short term, the market is a popularity contest. In the long term, the market is a weighing machine.” -Warren Buffett

The incredible action from some of the most heavily shorted names has investors everywhere wondering what it all means? GameStop (GME) specifically has taken the country’s imagination by storm, as the stock started the year under $20 per share and this morning nearly hit $500.

Please note, we aren’t allowed to discuss individual equities, and in no way are we recommending any stocks in this blog, but from a bigger perspective, what is happening here? Basically, individua

It has been a busy past 12 months for the Federal Reserve (Fed), after the onset of the global pandemic prompted historic stimulus from monetary policymakers. With the economy showing signs of being in the early stages of expansion, some have speculated that the Fed may begin to slow the pace of its asset purchases.  Recent comments from some Federal Open Market Committee (FOMC) members that have hinted that the Fed’s bond buying program could be reduced by the end of the year, has signaled that other policymakers may be thinking that way, too.

Adding fuel to the speculation, the 10-year Treasury yield has been climbin