| January Effect |
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A phenomenon occurring at the end of the year when investors begin worrying
about taxes. As a result, they sell some stocks which are down so they can write off the losses against their capital gains.
This causes stocks to go down near the end of the year, and back up in January when investors buy back the stocks they sold.
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The January Effect has not happened in years because the markets
have priced in the effects. |
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