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Strategies & Market Trends : Effective Collaboration - Team Research for Better Returns:

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From: The Ox12/18/2007 4:16:17 PM
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Just a few thoughts, feel free to comment or dispute.

401K money

More people max out their 401K contributions earlier in the year. Likewise, company matching will often max out earlier in the year. This leads to less 401k money coming into the market in December.

Of course, this changes in January.

Could this add to the market's downward bias in December? Tax loss selling certainly kicks the stocks that are down. Could the smaller amounts of 401K money going into the market also add to the downward bias?
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