Investment dictionary

JANUARY EFFECT

January Effect: translation

A general increase in stock prices during the month of January. This rally is generally attributed to an increase in buying, which follows the drop in price that typically happens in December when investors, seeking to create tax losses to offset capital gains, prompt a sell-off.

The January effect is said to affect small caps more than mid or large caps. This historical trend, however, has been less pronounced in recent years because the markets have adjusted for it. 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.

  1. january effectJanuary effect translation Refers to the historical pattern that stock prices rise in the first few days of January. Studies have suggested this holds only for small capi...Financial and business terms
  2. january effectбирж. январский эффект эффект января феномен подъема цен акций в период с декабря по января каждого года объясняется продажей бумаг для создания видимости убытков для н...Англо-русский экономический словарь