January Effect Meaning Examples Effect On Stock Market
What is January Effect? The belief in this market anomaly is backed by historical evidence, and the effect has been popular among investors for decades since its origin. However, its significance is decreasing as markets have largely adjusted for its occurrence and investment strategies based on this seasonal anomaly are no longer rewarding or highly profitable. January Effect on Stock Market Explained The January effect theory states that the stock and other assets price in the financial market rises in the first month of every year, specifically after experiencing a price drop in the last month of the previous year....