Market Slips: Will the January Effect Show Up?

The January effect is the supposed seasonal tendency for stocks to rise in the first month of the year. However, with January already halfway through, tech stocks have dragged down the market, and the S&P 500 has fallen 0.6% as of January 15. Will the January Effect still happen this year? Some say that the market's performance in January often sets the tone for the rest of the year. Do you think this signals what 2025 might look like?

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01-17

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Are Small Caps the Place to be for the Next Decade ?

Tom Lee says small-cap stocks can outperform by 100% over the next couple of years on Trump policies. Is this the time to position off the 200-day SMA before he takes office? $iShares Russell 2000 ETF(IWM)$ ImageWhile small caps have historically beaten large caps, the Russell 2000 has underperformed the $.SPX(.SPX)$ since 2014. Indeed, the S&P500 to Russell 2000 ratio has reached 3 standard deviations to the downside, sign of an extreme cheapness of small caps relative to large ones. ImageAfter a decade of mega caps' overperformance, during which indexing has become meanstream (pushed by personal finance influencers), adopting another stance could seem counterproductive to many. But, looking at longer
Are Small Caps the Place to be for the Next Decade ?

January Jitters: Will Rising Yields Derail the Market Rally?

The "January Effect," a term coined to describe the seasonal tendency for stock markets to rise in the first month of the year, has long intrigued investors. Historically, this phenomenon has been attributed to factors such as tax-loss harvesting in December and reinvestment at the start of the new year, alongside a general sense of renewed optimism. However, as of January 15, 2025, the S&P 500 has declined by 0.6%, with tech stocks leading the downward trend. This raises the question: will the January Effect materialize this year? Furthermore, how might climbing 10-year Treasury yields, now flirting with 5%, influence the market’s trajectory and the January Effect? The Role of the 10-Year Treasury Yield in Stock Valuations The 10-year Treasury yield serves as a cornerstone of global f
January Jitters: Will Rising Yields Derail the Market Rally?