My take on the January Effect

Hot Blooded Business

It is that time of the year where we sit down and quickly jot down our new years resolutions in the hopes to actually realize them during the year 2016.

It is also the time when we have literally exhausted our monies on a life of ‘excess’ during the festive period and we are dreading the ‘starvationo’ in the month of January. This comes to show why the January effect would be god sent to you.

The January effect is a trend in stock prices, especially small cap stocks (price times total number of shares issued), in which stock prices tend to increase in the last trading days of December (pssst!, this means you only have 3 more days to enjoy this phenomena in December) and the first week of January.

I conducted a simple analysis of this and found that, on average, in the past 3 years share prices have…

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