Page 17 - January Effect News Today : Breaking News, Live Updates & Top Stories | Vimarsana

Mcdonald joins us live, so what is going on, what is this january affect all about. >> reporter: it's an historical stock market trend, jon, so go the early days of training in january, so goes the rest of the year in trading. what happens is wall street tends to dump the dogs of the dow to create tax losses, or to make their year-end performance look a lot better and within that air pocket after the new year's ball drops they buyback those stocks basically because they think there may be gains. small caps think apple before the iphone or starbucks before the latte. small cap stocks tend to ge...

You're going to see 86% odds that the stock market actually ends the year higher, and that is a big odds right there. finally, since 1926 the small caps, when they do beat the big caps in the january effect, they tend to beat the large caps, get this. 76% of the time in january. but what is worth knowing here is bank of america, merrill lynch, that bank took a survey of fund managers and found a restrained mood when it came to buying equities, they are basically seeing that only 8% of the fund managers that recently were surveyed were overweight stocks by this time this year. back to you, jon....

Mcdonald joins us live, so what is going on, what is this january affect all about. >> reporter: it's an historical stock market trend, jon, so go the early days of training in january, so goes the rest of the year in trading. what happens is wall street tends to dump the dogs of the dow to create tax losses, or to make their year-end performance look a lot better and within that air pocket after the new year's ball drops they buyback those stocks basically because they think there may be gains. small caps think apple before the iphone or starbucks before the latte. small cap stocks tend to ge...

The first five trading days then you're going to see 86% odds that the stock market actually ends the year higher, and that is a big odds right there. finally, since 1926 the small caps, when they do beat the big caps in the january effect, they tend to beat the large caps, get this. 76% of the time in january. but what is worth knowing here is bank of america, merrill lynch, that bank took a survey of fund managers and found a restrained mood when it came to buying equities, they are basically seeing that only 8% of the fund managers that recently were surveyed were overweight stocks by this ...