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January effect

Stock market IssuerJapanese Candlestick

January Effect in the Stock Market
What is the January Effect?
The month of January in the stock market has strong significance in predicting the trend of the stock market for the rest of the calendar year.

 


January effect
January effect (somtimes called "year-end effect") is an unexplained financial phenomenon of most stock markets having significantly higher returns in January than in other months of the year.

January Effect
What It Is:
The January Effect refers to a pattern exhibited by stocks -- particularly small-cap stocks -- in which they' ...

Wikipedia:
January effect
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Definition
January Effect
The tendency for stocks to rise in the month of January after end-of-year and tax related selling has completed. The month of January is typically one of the best months for stocks.
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The January effect is suppose to be an indicator of where the market will go in the month of January and for the rest of the year after it. There are two affects that the month of January should have on the markets.

The January Effect has moved past the world of stocks and bonds. Companies may reduce inventory or the number of employees in December in order to reduce tax obligations, only to rehire and restock in early January.

- A second rationale is that the January effect is related to institutional
trading behavior around the turn of the years. It has been noted, for
instance, that ratio of buys to sells for institutions drops significantly ...

Describes the tendency of stocks to perform differently at different times, including performance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect.

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January Effect. The stock market has shown an uncanny tendency to end the year higher if prices increase during the month of January, and to end the year with lower prices if prices decline during January.

January Effect
Definition: A stock market oddity that is characterized by a year-end dip in the markets followed by a rally in January. Investors attribute the reason to end of year selling (for tax reasons).

January Effect
A general increase in stock prices during the month of January.

JANUARY EFFECT
is a phenomenon when stocks historically tended to rise markedly during the period beginning end December and finishes on the 4th trading day of January.
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January Effect
Stocks that move up in the month of January.
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January Effect: Refers to the idea that stocks, particularly small-cap stocks, historically rise up markedly in price. This starts on the last day of December and ends on the fifth trading day of January.

January Effect
The tendency for securities prices to recover in January after tax-related selling is completed before the year-end.
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January Effect - This refers to the tendency for small capitalization stocks to exhibit an upward bias in their price behavior. This may be partially attributable to the influence of index funds buying stocks for pension fund plans.

January effect
Refers to the historical pattern that stock prices rise in the first few days of January. Studies have suggested this holds only for small-capitalization stocks. In recent years, there is less evidence of a January effect.

Santa Claus rally The rise in stock prices that frequently occurs in the week following Christmas, in anticipation for the January effect. Sao Tome Dobra The currency of Sao Tome.

Calendar effectThe tendency of stocks to perform differently at different times, including such anomalies as the January effect, month-of-the-year effect, day-of-the- week effect, and holiday effect.

The rally is generally attributed to anticipation of the January effect, an injection of additional funds into the market, and to additional trades which must, for accounting and tax reasons, be completed by the end of the year.

You may hear about the so-called "January effect," too, where smaller companies have tended to do well in January.

There are typically strong stock performances in January which is commonly referred to as the "January Effect." This effect supposedly occurs because a lot of investors choose to sell some of their stock right before the end of the year.

week, or month a security is owned has on rates of return. For example, studies indicate tax selling produces downward pressure on stock prices during the end of the calendar year followed by upward price pressure in January. See also January effect.

See also: Stock, Market, Trading, Share, Stock market

Stock market IssuerJapanese Candlestick

 
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