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To: david sandel who wrote (5548)11/26/1999 1:45:00 PM
From: James Strauss  Respond to of 13094
 
The January Effect...
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David:

The January Effect refers to an upswing in small cap stocks during the month of January... The reason for this is that investors/traders take losses for tax purposes in the Oct/Nov/Dec period... As usual they overdo it, creating oversold bargains among the small caps... Savvy investors/traders scoop up these stocks at these bargain prices creating supply/demand pressures on the price of these stocks... The result is many of these small caps outperform the market during this period... The process is called The January Effect...

Jim