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Strategies & Market Trends : January Effect 2001 -- Ignore unavailable to you. Want to Upgrade?


To: RockyBalboa who wrote (119)12/27/2000 10:45:26 PM
From: Q.  Read Replies (2) | Respond to of 289
 
Thanks, IS, for this important backtest.

The lesson is clear: these beaten-down stocks that are unloved by institutions got to be that way for a reason. Don't hold them, just play them for January and then get rid of them.

The idea of shorting them thereafter hadn't occurred to me, but you might be onto something. For the list of stocks you presented from last year, it would have paid to short the whole bunch; even the single winner, at 300%, would have been offset by the large number of huge losers.