Talk of The Villages Florida - View Single Post - "January Effect" with stock market
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Old 02-02-2014, 09:10 PM
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glgene glgene is offline
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Quote:
Originally Posted by villagerjack View Post
Actually Gene,the so - called "January effect" is something other than what you are describing. It has to do with folks taking tax losses in December, making stocks cheaper in January, primarily small cap stocks. This has less validity in recent years since a lot if stocks are held in 401k's.
I can't disagree with you. I used the phrase "January Effect" because that's how it was reported on CNBC. I think the commentator should have said "January Barometer." Because that's what he was describing (as goes January, so goes the remainder of the year), with the Probability numbers I reported in my original post. Substitute "January Barometer" in this thread, and we're talking about the CNBC story. Thank you for pointing out the misuse of "January Effect."

Gene