All tagged January Effect

The January Effect

In the world of investing, the basic questions investors want to know are, “Where should I put my money?” and “When should I invest?”. Within the financial world, entire departments inside banks, and even non-financial companies, are devoted to answering these two questions. Having the answers to these questions can yield significant returns on investment, and so firms put a great deal of time, money and effort into solving them. Not too long ago, the answer to the question of “when to invest?” may have had an answer. For decades investors observed an oddity in the market that reduced risk but occurred repeatedly. Unfortunately, it is largely believed this phenomenon no longer exists in our markets today. Despite this, it is still interesting to delve into the intricacies of such a lasting event.