Talk:January effect

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Caution needed[edit]

If the cited reason (end of year selling) was the cause of "the January effect", then December should show depressed returns on average, which is not supported with the chart presented. Also... (a) not all markets have financial year at calendar year so this should not be presented as relevant to all markets and (b) if market returns shown are measured as gross return on entire capital markets then those return figures are massively dominated by large companies ... which makes the comments about "especially small-cap stocks" unsupported without citation. ie the article implies small caps would show larger returns than the chart presents, which seems unlikely especially in an age where so much analysis is being performed by so many people.

The article should contain cautionary notes to those who might try to invest on this basis.

Wrong definition[edit]

Isn't the January effect most often used to refer to the fact that January has high returns in many stock markets? (Not related to the stock size.) Ben Finn (talk) 17:36, 11 May 2009 (UTC)[reply]

better source[edit]

http://www.fool.com/investing/international/2009/05/07/5-stocks-to-bloom-in-may.aspx —Preceding unsigned comment added by Pisibe (talk • contribs) 21:53, 29 May 2009 (UTC)[reply]

Incorrect source[edit]

As of today (11 March 2010), the last sentence is "The January effect does not always materialize; for example, small stocks underperformed large stocks in January 1982, 1987, 1989, 1990, and 2008.[2]". However, reference [2] is "Siegel, Jeremy J.: Stocks for the Long Run (Irwin, 1994)pp. 267-274". Is there other sources that corroborates this for 2008? —Preceding unsigned comment added by 189.60.174.248 (talk) 02:41, 12 March 2010 (UTC)[reply]

Discovery[edit]

The January effect was not discovered by Donald Kaim. In, or before, 1942 Sidney B. Wachtel 'coined the investment term "the January effect"' and his '1942 paper, "Certain Observations on Seasonal Movements in Stock Prices' is cited widely as being the first published mention of it. http://www.washingtonpost.com/wp-dyn/content/article/2008/10/02/AR2008100203726.html

"The January effect was brought to the attention of modern finance by Rozeff and Kinney, but it was first introduced to the academic literature more than 50 years ago by Wachtel." The January Effect: Still There after All These Years, Robert A. Haugen and Philippe Jorion, Financial Analysts Journal, Vol. 52, No. 1 (Jan. - Feb., 1996), pp. 27-31 87.112.188.31 (talk) 00:03, 22 March 2011 (UTC)[reply]

This seems to be about the United States....[edit]

...it needs a global perspective. Or caveats that the research and sources cited refer to the United States. — Preceding unsigned comment added by 219.76.19.205 (talk) 07:17, 19 December 2016 (UTC)[reply]