The January Effect, a term coined to describe the rise in stock prices typically seen in January, has intrigued market participants for decades. This phenomenon is thought to be influenced by a mix of investor behavior patterns, tax considerations, and a collective psychological reset as the calendar flips to a new year. Below, we analyze this trend through the lens of both the S&P 500 and Dow Jones Industrial Average to evaluate how reliable it is…and whether traders should trust it moving forward. The January Effect: Potential Explanations There are multiple compelling explanations for a general rally in stocks in ... (full story)