Investors are watching the Santa Claus Rally get dashed and there’s a seemingly bold sense of optimism that is floating around in the market. That feeling that stocks can’t fall 10-20% because it’s the beginning of the year.
Believe me, I’ve been watching this trend for the last 20+ years, stocks can and do fall and they do it with stunning predictability.
Enough predictability for me to say “January and February are two of the worst months of the year for stocks”.
Does this mean that the stock market is doomed? No.
What it does mean is that you should prepare for a healthy correction in stocks with a few simple steps.
This post originally appeared at Money Morning.