The January Effect – Fact or Fiction

Dear Profit Takeover reader,

The January Effect is a common belief for stock traders stating that typically, markets will rise during the month of January.

But I’m here to tell you the truth –

That’s a load of crap.

Let’s unpack the truths from the myths here:

Overall, stocks do go higher – that is typically true.

Generally, during at least 9 out of 10 years, the market will move higher – this is also typically true.

The issue here is that during the final year, the market moves MUCH lower.

And what we see in January is typically how the market will move over the entire year.

So – if it’s one of the “good overall” years, January will usually move higher.

But, if it’s one of the not-so-good years, January might not move much or might head lower.

Lots of people say that the January Effect is true, but just because something is popular opinion doesn’t make it fact –

In this clip, I’ll share why you shouldn’t be fooled into being bullish in January:

Until next time,

Mark Sebastian