Definition of January Effect:
The effect of January is the expected seasonal rise in stock prices during the month of January. Analysts generally attribute the increase in purchases to the fall in prices in December, when investors cover the tax losses, the benefit of which is that large-scale sales close. Another possible explanation is that investors use cash bonds at the end of the year to buy investments in the next month.
- There is a seasonal trend of stock increase in January this month.
- From 1928 to 2018, the S&P 500 rose 62% (56 out of 91 times) in January.
- The January effect theory works when investors sell the winners to pay capital gains tax at the end of the year and use the funds to speculate on low performance.
- Like other market anomalies and temporary effects, the January effect has been seen by some as a test of effective market assumptions.
Literal Meanings of January Effect
Meanings of January:
The first month of the year is generally considered the second winter month in the Northern Hemisphere.
Sentences of January
Sophie turned two in January.
Meanings of Effect:
Let (something) happen.
Changes that are the result or consequence of an action or other cause.
Light, sound or scene is used in a play, movie or program.
Sentences of Effect
Nature always heals
The deadly effects of severe drugs
Production relies heavily on amazing effects efek
Insurance includes personal belongings
Synonyms of Effect
discharge, consummate, personal possessions, do, personal effects, perpetrate, bring off, exert influence on, ■■■■■■■, hit, carry out, carry through, work on, affect, act on, fulfil, impact on, condition, interact with, influence, take hold of