Why the January Effect Exists and How Investors Can Capitalize On It
Robert R. Johnson
Returns in the stock market historically have buoyed investors’ portfolios in January, producing an average gain of 5% for nearly five decades.
The market has outperformed in January from 1963 to 2010, and the average return for the broad market index was over 5% compared to other months which produced returns of 1%, according to research conducted by Scott Beyer of the University of Wisconsin-Oshkosh, Luis Garcia-Feijoo of Florida Atlantic University and Gerry Jensen of Northern Illinois University.
Chang, Ellen, "Why the January Effect Exists and How Investors Can Capitalize On It" (2015). In the News. 303.