forex January Effect of the Stock Market

[Anzo Lim 0]

https://www.wikifx.com/cn_en/

January effect is a seasonal pattern of generally uprising stock prices in January.

The pattern is quite evident in historical records. For instance, the NASDAQ-100 index had gone up in January for 31 times since 1972.

 

Over the past 3 years, major benchmark stock indices including STP 500, DAX30 index and SSE Composite index have all increased in January. The rising trend in January’s stock market may be partly attributed to investors’ putting their seasonal bonuses into the market, while investors’ mindset is another important factor. Many investors are inclined to establish new investment portfolio in the new year.

 

Historical records of the STP 500 index since 1928 show that the average return rate in January is 1%, lower than that in March(1.2%), April(1.5%) and November(1.5%). On the other hand, average return in September is -0.5%.

 

Edited December 26, 2019 by Anzo Lim