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Politics : Formerly About Applied Materials
AMAT 238.47+3.3%1:20 PM EST

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To: Sam Citron who wrote (55214)11/8/2001 12:31:04 PM
From: Jacob Snyder  Read Replies (2) of 70976
 
re: beginning of Jan effect

I thought the January effect was due to:
1. bonuses given in January (anyone getting those this year?)
2. the end of tax-loss selling (other than short-sellers and day-traders, anyone have cap gains that need offsetting?)

Hard to see how the January Effect could be pushed into November. I think, as you say, that this is due to the Fed's liquidity actions. Last time, the market peaked in April 2000, 4 months after the Fed shut down the liquidity spigot (actually, just turned it down to more normal levels).
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