What Is the January Effect?
The January effect is a historical tendency for smaller stocks to rise in January. Like all seasonal
patterns, it is a tendency, not a rule.
1
A calendar quirk
Small stocks have tended to rise in January.
2
Why, maybe
Tax-loss selling reverses; new-year inflows arrive.
3
Faded
Well known now, so the edge has shrunk.
Source: CFGI
Markets