The stock market kicked off the New Year with new record highs as expected from the strong January effect
However, we expect bargain hunting to flood the equities market this month majorly due to January effect
, APT Securities said.
Mostly this effect as a trading strategy often has been considered as an anomaly associated with the January effect
as institutions and investors realize their profits and reorganize their portfolios based on their tax situations.
Therefore, our tests are not confounded by tax loss selling, a common explanation for the January effect
1987; Ariel 1987; Tong 1992; Pandey 2002), the January effect
happens due to several reasons indentified like, it occurs due to taxmotivated transaction, market participants intends to reduce their tax expenses by closing their bad positions, returns realized on small and large firms.
The purpose of this study is to explore the efficiency of KSE in light of different seasonal patterns like Day of the week effect, January effect
, Turn of the Month (TOM) effect and Ramadan effect.
Fannie Mae exec Kimberly Johnson said that participation in FLA 2013-M1 was quite broad, as the January effect
has been true to expectations.
The month of the year's effect most commonly referred to as January effect
is the most prominent of all monthly calendar anomalies (Ali and Akbar).
We know there are times when the market tends to rally, such as the January effect
, which might make it more likely for those drops to occur in the summer months.
A swift glance at the outcome may let somebody to contemplate that the conclusions seems contentious as one study acknowledges the existence of the January effect
while other does not.
Lee and Lee (2003) and Wiley and Zumpano (2008) examine calendar REIT anomalies in conjunction with institutional investing, specifically examining the January effect
and the turn-of-the-month effect, respectively.
Dyl and Maberly (1992) suggest that the January effect
is influenced by the trading of individual investors.