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January Effect

Not so positive year this compare to 2006 .... A likely 7% GST and 15% employer's CPF contribution. HeeHee!! Better reap your gains before profit taking for CNY next month.

 

look like this year more AWS, more bonus, more buy

 

Capricorn effect in today's 1st day trading of Year 2007?!! More to come ..... Its a 'SHEEP' run!

 

I don't really bother about such effects. Because I use TA, these effects, if any, will show up on the charts anyway.

 

There was a recent article in the Straits Times that debunked these effects. They said that its no longer valid anymore in the Singapore context.

 

Is there a difference between January Effect and Capricorn Effect? Any enlightenment?? !!!!!!!! I am learning from this sharejunction forum, it helps us to make "educated" decisions about investing. Thanks to the administrators and organisers of sharejunction.com.

Let's make an effort to discuss about stock markets here, and keep away from discussing about religions or politics in this forum. Sometimes I do come across such posts.

 

found this info useful.....

 

January Effect

Definition

Tendency of the stock market to rise between December 31 and the end of the first week in January. The January Effect occurs because many investors choose to sell some of their stock right before the end of the year in order to claim a capital loss for tax purposes. Once the tax calendar rolls over to a new year on January 1st these same investors quickly reinvest their money in the market, causing stock prices to rise. Although the January Effect has been observed numerous times throughout history, it is difficult for investors to profit from it since the market as a whole expects it to happen and therefore adjusts its prices accordingly.

 

hi fellow masters,

         i read abt January effect somewhere but have no idea what it means...  Can anyone enlighten me?



Thank you!