The January Effect - Deepstash

Keep reading for FREE

The January Effect

It is defined as a perceived seasonal increase in stock prices during January.

Analysts generally attribute this rally (a period of sustained increases in the prices of stocks, bonds, or related indexes) to two factors.

  1. A price drop happens in December - when investors prompt a sell-off due to tax-loss harvesting to offset realized capital gains - followed by an increase in buying in January.
  2. Investors use year-end cash bonuses to purchase investments in January.

25

183 reads

MORE IDEAS ON THIS

Studies and Criticism

  • A study analysing data between 1904 and 1974 revealed that the average return for stocks during January was five times higher than any other month, particularly in small-capitalisation stocks.
  • Another study from 1972 to 2002 found that the Russell 2000 inde...

21

91 reads

January Effect Explanations

Besides tax-loss harvesting and repurchases, and investors putting cash bonuses into the market, the January Effect is affected by investor psychology.

  • Some investors feel that January is the best month to begin an investment program.
  • Others think that mutua...

19

70 reads

Understanding The January Effect Hypothesis

The January effect was first noticed in 1942 but has been less pronounced in recent years. The hypothesis suggests that markets as a whole are inefficient. Efficient markets would not follow this effect.

Small caps - companies with a relatively small market capitalisation ...

19

96 reads

CURATED FROM

January Effect

January Effect

investopedia.com

|

4 IDEAS

Β·

440 Reads

CURATED BY

lucy_d

Investing and saving is not the same thing.

MORE LIKE THIS

January Effect Explanations

Besides tax-loss harvesting and repurchases, and investors putting cash bonuses into the market, the January Effect is affected by investor psychology.

  • Some investors feel that January is the best month to begin an investment program.
  • Others think that mutua...

Ready for the next level?

Read Like a Pro

stash-superman-illustration

Explore the World’s

Best Ideas

200,000+ ideas on pretty much any topic. Created by the smartest people around & well-organized so you can explore at will.

An Idea for Everything

Explore the biggest library of insights. And we've infused it with powerful filtering tools so you can easily find what you need.

Knowledge Library

Powerful Saving & Organizational Tools

Save ideas for later reading, for personalized stashes, or for remembering it later.

# Personal Growth

Take Your Ideas

Anywhere

Organize your ideas & listen on the go. And with Pro, there are no limits.

Listen on the go

Just press play and we take care of the words.

Never worry about spotty connections

No Internet access? No problem. Within the mobile app, all your ideas are available, even when offline.

Get Organized with Stashes

Ideas for your next work project? Quotes that inspire you? Put them in the right place so you never lose them.

Join

2 Million Stashers

4.8

Stars

5,740 Reviews

App Store

4.7

Stars

72,690 Reviews

Google Play

samz905

Don’t look further if you love learning new things. A refreshing concept that provides quick ideas for busy thought leaders.

β€œ

Shankul Varada

Best app ever! You heard it right. This app has helped me get back on my quest to get things done while equipping myself with knowledge everyday.

β€œ

Ashley Anthony

This app is LOADED with RELEVANT, HELPFUL, AND EDUCATIONAL material. It is creatively intellectual, yet minimal enough to not overstimulate and create a learning block. I am exceptionally impressed with this app!

β€œ

Sean Green

Great interesting short snippets of informative articles. Highly recommended to anyone who loves information and lacks patience.

β€œ

Jamyson Haug

Great for quick bits of information and interesting ideas around whatever topics you are interested in. Visually, it looks great as well.

β€œ

Ghazala Begum

Even five minutes a day will improve your thinking. I've come across new ideas and learnt to improve existing ways to become more motivated, confident and happier.

β€œ

Giovanna Scalzone

Brilliant. It feels fresh and encouraging. So many interesting pieces of information that are just enough to absorb and apply. So happy I found this.

β€œ

Laetitia Berton

I have only been using it for a few days now, but I have found answers to questions I had never consciously formulated, or to problems I face everyday at work or at home. I wish I had found this earlier, highly recommended!

β€œ

Read & Learn

20x Faster

without
deepstash

with
deepstash

with

deepstash

Access to 200,000+ ideas

β€”

Access to the mobile app

β€”

Unlimited idea saving & library

β€”

β€”

Unlimited history

β€”

β€”

Unlimited listening to ideas

β€”

β€”

Downloading & offline access

β€”

β€”

Personalized recommendations

β€”

β€”

FAQ

Claim Your Limited Offer

Get Deepstash Pro