turn-of-the-month effect

Turn-of-the-Month Effect

A temporary increase in stock prices during the last few days and the first few days of each month. Some analysts credit the turn of the month effect to distributions from pension funds and other retirement accounts that the pensioners immediately reinvest in the stock market. See also: Calendar effect.

turn-of-the-month effect

The tendency of stock prices to increase during the last two days and the first three days of each month. Some researchers ascribe the effect to the timing of monthly cash flows received by pension funds and reinvested in the stock market.
References in periodicals archive ?
Among the topics are arbitrage strategies for cross-track betting on major horse races, land and stock prices in Japan, the turn-of-the-month effect in the world's stock markets from January 1988 to January 1990, and the dosage breeding theory for predicting horse races.
The pattern is also not driven by particular months of the year, days of the week, or turn-of-the-month effects.