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
We’ve heard the Warren Buffett’s saying a hundred times: Be fearful when others are greedy and greedy when others are fearful. Over the last year, corporate insiders as a group have done just that. During most of 2018 officers and directors sold heavily. However, as panic selling by investors has intensified in recent weeks, so has insider buying. Through Thursday of this holiday-shortened trading week, the WhaleWisdom Insider Sell vs Buy ratio was at 0.44.Read More
There’s an old Wall Street saying: “Don’t try to catch a falling knife.” Sage advice, but in recent weeks stocks have been falling like a thousand machetes. If you’re an investor, every buy decision made since October has likely had…Read More
For the first time in a decade, there’s a whiff of real fear in the financial markets. I’m not talking about the low-grade anxiety we’ve seen occasionally during the bull market, where investors worry about when to buy the dip. Over the last few days we’ve seen something different -- a deeper fear, fear that comes from not knowing if there is a bottom.Read More