January Effect: Each year, the stock market tends to increase slightly in value between December 31 and the end of the first week of January. Known as the January Effect, this rise starts when investors sell underperforming stocks at year-end to claim capital losses on their tax returns. After the new tax year begins on January 1, the same investors tend to reinvest the money from those sales, heightening demand temporarily, and making the overall market rise slightly during that week.

 

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January Effect: Each year, the stock market tends to increase slightly in value between December 31 and the end of the first week of January. Known as the January Effect, this rise starts when investors sel . . . View Full Definition

Calendar Effect: Describes the tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and hol . . . View Full Definition

Kostinsky Effect: Development effect in which dense image points are inclined to move apart, relative to each other, and light image points to move together, relative to each other. This occurs because develo . . . View Full Definition

January Barometer: A statistic from 'The Stock Traders Alamanac' reflecting, with 88% accuracy, that the overall stock market rises in a year when the S&P is up in the month of January and drops when the index . . . View Full Definition