Hello guys! Have you ever heard of the "January effect"? It's a pattern that has been observed in financial markets where the prices of small cap stocks tend to go up in the month of January. Some people think this happens because of tax-loss selling (when investors sell stocks that aren't doing well in order to reduce their tax burden) or because more people are interested in buying small cap stocks at the start of a new year. It's important to remember that the January effect isn't a sure thing and shouldn't be the only reason you make investment decisions.
What do you think about this effect?
What do you think about this effect?