Many analysts claim that the January Effect and other seasonal anomalies are nothing more than market myths, with little evidence to prove the phenomenon definitively.
With tax-loss harvesting, investors can lower their taxable income by writing off their annual losses, with the tax timetable ending on December 31.
U.S. consumers, who have a robust say in how the American economy will perform, traditionally view January as a fresh start.
January may give mutual fund portfolio managers a chance to start the year fresh and buy new stocks, bonds, and commodities.
Studies have found that small- and mid-cap stocks tend to outperform the market during January because they are less liquid.
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