Is the January Effect a bunch of bull? These oversold small caps may rally in the new year regardless.
Many “effects” in finance have been linked to the calendar. There’s the Weekend Effect, the Turn-of-the-Month Effect, the October Effect, even the Mark Twain Effect. But probably the most widely discussed is the January Effect. This is the tendency for stocks – particularly small-cap stocks – to outperform in January vs other months. The January Effect is a market “anomaly” – market price behavior that “shouldn’t” happen.Read More