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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?


To: Jacob Snyder who wrote (55220)11/8/2001 1:45:38 PM
From: Math Junkie  Respond to of 70976
 
Jacob, there is also

3. Anticipation of January effect.

There are lots of countervaling forces. Hard to say which will win in the short term.



To: Jacob Snyder who wrote (55220)11/8/2001 2:04:53 PM
From: Sam Citron  Read Replies (1) | Respond to of 70976
 
re Jan effect:

I've never heard anyone attribute it to Jan bonuses before.
Tax losses are not the only reason to dump the internet stock that you bought in January 2000 at $75 for 75 cents in October 2001. A good part of it is just the pain of having to be reminded of the mistake each time you check your portfolio. So window dressing is not confined to institutional investors, although that is a big part of it.

Regardless of the reasons for the Jan effect, Oct. to Jan. historically sees huge price appreciation on < $10 stocks that have seen big drops from the previous year.

Sam