What Investors Need to Know for February

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When people talk about the January chill this year, it’s just as likely they mean the stock market as the weather.

The first month of the new year was a frosty experience for investors, leaving them hoping that February will bring a welcome thaw.

A month-ending drop on Friday left the Standard & Poor’s 500 index in a 3.1% hole for 2015.

1. January jitters: Spillover effect?

January is known for setting the tone for the rest of the year in terms of stock performance. Investors shouldn’t despair. This is exactly how last year started — in fact, it was even worse. Yet 2014 ended in fine fashion. Though this time things are different because the stock market faces headwinds that didn’t exist a year ago.

2. Hot prospects

If you’re looking for stocks to heat up your portfolio in February, there are a handful of hot prospects. The market overall has done well in February – gaining an average 3.1% the past five years. And 11 stocks in the S&P 500 that have beaten the market consistently in February during that period.

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Source: USA Today