Market Wrap
Friday Workout — January Effect; Flows before Prose; Shopped Out
- Chris Haffenden
•14 min read
Beware the highs of January. From bitter experience, the January effect — New Year optimism, the reversal of tax loss selling, a need to hit the ground running and commit to your new investment picks can last a couple of weeks or more — but often than not it can be a head fake.
For stock markets, it’s statistically the best month for returns. As Cazenove Capital points out, January trounces other months in performance.