# January effect

- Canonical URL: https://www.gerhardmerk.de/january-effect
- Post ID: 588179
- Modified: 2023-07-25T21:01:49+00:00
- Language: en

## Definition

The fact that shares of smaller companies yield above-average returns in January (the systematic outperformance of small stocks with respect to large stocks during January). A fully convincing and rational explanation for this (such as: tax-related decisions of certain investor groups: the rally then is ascribed to an increase in buying, which follows the drop in price that usually happens in December when investors, seeking to create tax losses to offset capital gains, prompt a sell-off) could not yet be offered by financial market theory. - See Animal Spirits, Behavioural Finance, Issue Calendar, Financial Psychology, Friday-13 Anomaly, Halloween Rule, Calendar Effect, Monday, Black, Monday Effect, Friday, Black, Sell-in-May Effect, Small Cap Effect, Christmas Enlivenment, Weekend Effect. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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