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HomeRight Arrow TerminologyRight Arrow January Effect

January Effect

Description

The January Effect is a phenomenon in which stock prices tend to increase during the month of January. This effect is theorised to be caused by an increase in buying, which follows the drop in price that typically happens in December when investors, engaging in tax-loss harvesting to offset realised capital gains, prompt a sell-off.

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Access markets including forex, commodities, indices, shares and more, at low cost.

Start Trading with Vantage

Access markets including forex, commodities, indices, shares/stocks and more, at low cost.

Start trading CFD stocks by opening a live account here, or practice trading with virtual currency with a demo account.

You can also sign up for our free, weekly webinars that will break down the current markets as well as discuss potential trade set ups for the week.

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