Keith Springer Featured in CNBC.com Article Dow 12,000? January Effect

Jan. 25, 2011 - PRLog -- According to Jeff Cox, staff reporter for CNBC, “There are twin theories about the first month of the year: The notion that "as goes January so goes the rest of the year," as well as the January Effect, which says that late-year selling usually begets early-year buying. Both have been missing the past two years in the stock market, with each producing a negative first month that preceded strong gains through the full year. So while this January has produced solid moves higher for the major averages, market pros are advising caution in using that as a barometer for what the market will for the year.”

Keith Springer, president of Springer Financial Advisors in Sacramento, CA. said that should the January Effect hold, it's likely that small- and mid-caps will benefit, even after a banner year in 2010. "That's the sweet spot for this market," Springer said. "Those companies tend to benefit the most from growth."

However, he also thinks that while the market is likely to continue to grow for the first half of the year, the ending of Fed intervention and the realization from investors that real economic recovery is a long way off will hammer stocks, with up to a 50 percent drop possible. "At some point the rug is going to get pulled out from under you and there's going to be no place to hide," he said. "Whoever is holding the bag at the end is going to get crushed."


To view more print and live media interviews with Keith, visit www.KeithSpringer.com and click the “Keith in the Media” link, email Keith@KeithSpringer.com or call (916) 925-8900.

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About Springer Financial Advisors: Keith Springer is a financial planner, a market technician, a financial writer, founder of Top Down Tactical™ and President and founder of Springer Financial Advisors in Sacramento CA, a SEC Registered Investment Advisor. He has developed a proprietary process for successfully building tax-efficient and retirement portfolios and has been providing specialty wealth management services for over 25 years.