|
PureBytes Links
Trading Reference Links
|
> I posted a message on 98-11-01 about tax loss selling and January effect -
> whether anyone has done any research and how successful it would be.
Ok, no research, just an opinion. We've already had our "January
effect". What? Consider 3 things...
1. Institutions (mutual funds, pension funds, etc) own most of the
stocks.
2. Many of these institutions have a fiscal year that ends Oct. 31.
3. Most the the stocks and mutual funds held by private investors are in
401K or other tax-free accounts.
John Bollinger was on CNBC and mentioned the Oct. 31 thing. He says that
is why Oct. is always a wild month. Many of the fund managers have their
bonuses tied to performance at the end of the fiscal year so they are
doing a lot of window dressing.
At one time, when wealthy private investors controlled a bigger piece of
the stock market, the real January effect was much more pronounced.
Just my opinion.... that and a buck will get you a cup of coffee. :-)
--
Dennis
|