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The January Effect Pervades The Market Monitor: The Big Point

Professor Glenn A. Okun

The Rabid Capitalist: The Big Point is a summary of a detailed note available to paid subscribers. 

The January effect, the trading pattern in which there is a broad stock market rally during the first month of the year, dominated equities. The monthly monitor has captured the investors’ confidence in a context of historically high valuations. While valuation has not caused market corrections, it makes equities susceptible to harsh punishment should firms disappoint investors’ quarterly expectations.

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