The January Effect

4 April 2015
This paper takes a look at the trend of “The January Effect” on stock markets.

This paper examines one of the most profound and best-known of all the psychological phenomena in the stock market: The January effect. It discusses this trend, asking if it is a real phenomena or simply a mass marketing campaign. It provides an extensive look at the psyche of the stock market junkie. Many graphs are displayed.

From the paper:

“Nothing is a sure bet in the world of investing in stocks ? maybe even not death and certainly not taxes, as revelations about Enron have recently reminded us. And it is precisely this high level of insecurity that prompts people ? even against all possible rational reasons ? to look for patterns in the stock market that will help them invest, just as a person desperate to have a winning day at the track will bet on every fifth horse, or every horse wearing green and white, or every jockey whose name begins with K.

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One essential difference between horse-racing and the stock market, however, is that the actions of those ?betting? ? i.e. buying and selling shares ? can have a real effect on the end result.”

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The January Effect. (2015, Apr 23). Retrieved December 6, 2019, from
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