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Topic: January effect

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	Jury is out on Playing the January Effect (Russell.com)
		Around this time each year, investment managers decide whether to use trading strategies that seek to take advantage of the January Effect, the name given to the phenomenon that may occur when tax-conscious investors sell stocks that are down for the year in order to write off losses against capital gains.
		In years that this effect has been visible, small-cap stocks have often outperformed large-cap stocks in the beginning of the year.
		They agree that the Effect has not worked every year, but they suggest that a careful examination of the markets in the year leading up to January indicates why it has worked in certain years and not in others.
	www.russell.com /CA/Education_Centre/Article_Library/Market_Analysis/2005/January_CA.asp (866 words)

	Dogs of the Dow - January Effect
		The January effect is predicated on the theory that investors tend to sell of their losing stocks towards the end of the year in order to write the losses off on their taxes.
		Therefore, according to the January effect, stocks will tend to dip towards the end of the year and rebound in January when tax-loss selling has ended.
		The January effect is supposed to have a greater affect on small-cap stocks (as opposed to large-caps) since it is assumed that a relatively small amount of tax-loss selling will still have a significant impact on a relatively small, thinly-traded company.
	www.dogsofthedow.com /January_Effect.htm (206 words)

	January effect - Wikipedia, the free encyclopedia
		The January effect (sometimes called "year-end effect") is a calendar effect wherein stocks, especially small-cap stocks, have historically tended to rise markedly in price during the period starting on the last day of December and ending on the fifth trading day of January.
		This effect is owed to year-end selling to create tax losses, recognize capital gains, effect portfolio window dressing, or raise holiday cash.
		In the last couple of years, after the January effect became widely known to the public, it has become less pronounced and has started shifting to December causing a rise in stock prices, known as a Santa Claus rally and the December Effect.
	en.wikipedia.org /wiki/January_effect (185 words)

	The January Effect
		And then I'll explain why I think the January Effect is now just another Wall Street investment scam - one that the financial world uses to get you to buy stocks, but in reality the fabled January Effect actually won't ever be a reliable strategy again.
		The reason for the January Effect is debated among academics.
		In short, the January Effect is an interesting historical anomaly-one that hasn't been profitable for many years, and in my opinion will never be profitable again.
	www.investmentu.com /IUEL/2004/20041229.html (1038 words)

	January Effect
		This rally is generally attributed to investors buying stocks that have dropped in price following a sell-off at the end of December by investors seeking to create tax losses to offset any capital gains.
		The January effect is said to affect small-caps more than mid/large caps.
		Another reason the January effect is now considered less important is that more people are using tax-sheltered retirement plans and therefore have no reason to sell at the end of the year for a tax loss.
	www.investopedia.com /terms/j/januaryeffect.asp (303 words)

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