Follow WallStreetBlips on Twitter
Thursday links: scary predictions
Abnormal Returns —
... The January Effect works in spades after really bad years for stocks. (World Beta) ...
Further reading
FT Alphaville —
Elsewhere on Friday: - Dubbed the world’s biggest heist by Felix Salmon at Portfolio and the year’s biggest story according to Financial Armageddon , the SEC charges Bernard L. Madoff for multi-billion dollar Ponzi scheme. - The big three automakers will face an immediate cash crisis writes CNN. - What will low T-bill yields do to money market funds? - WSJ - The January effect on stocks - World Beta - A quick take on the growing US trade deficit - Brad Setser - The Fed declines to tell Bloomberg who’s ...
Microcap seasonal strategy
microcapspeculator.net» The Microcap Speculator —
... Over at World Beta, Mebane Faber has a great post on the “January effect.” That term describes the tendency of microcap and smallcap stocks to dramatically outperform both on a relative and absolute basis during the month of January. I’ve mentioned ...
Your Guide to Cashing In on the January Effect
Trading Goddess —
... There is much debate as to whether or not the January Effect is real. Meaning do stocks actually rise in January? The chart below, courtesy of World Beta, suggests they do. The chart shows the results of trading the January effect over the past 80 years. The red line represents buying and holding the bottom 20% of the US stock market during January of each year; the blue line represents investing in the S&P 500 during January of each year. Both strategies prove to be consistently profitable. ...
LinkFest
World Beta - Engineering Targeted Returns and Risk —
... 2. Look for a particularly pronounced January Effect in beaten down microcaps. Poor but mixed. Small caps and microcaps performed poorly - down around 10% and 13% respectively vs. down around 8% for large caps. I mentioned two stock screens as well. The first was down a whopping 20% while the second was up around 6%. The second screen used insider buying as a screen criteria, so maybe beaten down stocks that are experiencing heavy insider buying are good opportunities right now? The performance was also much ...
