Comments on: The January Effect http://www.bargaineering.com/articles/the-january-effect.html personal finance blog with anecdotes, advice and commentary. Sun, 08 Nov 2009 13:29:19 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: thomas http://www.bargaineering.com/articles/the-january-effect.html/comment-page-1#comment-294548 thomas Tue, 06 Jan 2009 06:09:20 +0000 http://www.bargaineering.com/articles/the-january-effect.html#comment-294548 weakonomist - Do you think we have an efficient market? Didn't think so. weakonomist – Do you think we have an efficient market? Didn’t think so.

]]> By: Mrs. Accountability http://www.bargaineering.com/articles/the-january-effect.html/comment-page-1#comment-294471 Mrs. Accountability Mon, 05 Jan 2009 01:57:03 +0000 http://www.bargaineering.com/articles/the-january-effect.html#comment-294471 Agh, this is all way over my head. My grandma used to say she made all her money in the stock market, but I think it was just that she was so frugal, knew where every penny went and saved as much as she could. I have always wanted to know more about buying stocks and such, but now a little paranoid with how people have lost so much money. It is on my TO DO list to learn more about it someday though as it is interesting to me. Agh, this is all way over my head. My grandma used to say she made all her money in the stock market, but I think it was just that she was so frugal, knew where every penny went and saved as much as she could. I have always wanted to know more about buying stocks and such, but now a little paranoid with how people have lost so much money. It is on my TO DO list to learn more about it someday though as it is interesting to me.

]]> By: the weakonomist http://www.bargaineering.com/articles/the-january-effect.html/comment-page-1#comment-294450 the weakonomist Sun, 04 Jan 2009 15:26:19 +0000 http://www.bargaineering.com/articles/the-january-effect.html#comment-294450 Transaction costs are the only reason this anomaly still exists. A true efficient market believer would say simply writing about it removes it's viability for implementation. If everyone knows about it, they would exploit it and market demand for these stocks would drive them up too far for a decent return. This was one of those fascinating discoveries I remember from college. One of my professors also found something about buying stocks the 3rd friday of each month and selling the following tuesday or something, all the while keeping your money in t-bills the rest of the week. His research showed you would beat the S&P quite remarkably. But once again, transaction costs make it nearly impossible. Transaction costs are the only reason this anomaly still exists. A true efficient market believer would say simply writing about it removes it’s viability for implementation.

If everyone knows about it, they would exploit it and market demand for these stocks would drive them up too far for a decent return.

This was one of those fascinating discoveries I remember from college. One of my professors also found something about buying stocks the 3rd friday of each month and selling the following tuesday or something, all the while keeping your money in t-bills the rest of the week. His research showed you would beat the S&P quite remarkably. But once again, transaction costs make it nearly impossible.

]]> By: Chandra http://www.bargaineering.com/articles/the-january-effect.html/comment-page-1#comment-150488 Chandra Tue, 04 Sep 2007 23:09:53 +0000 http://www.bargaineering.com/articles/the-january-effect.html#comment-150488 I'd be interested in getting a ~10% return in a 2 month period. But how do I filter for those particular stocks ? I’d be interested in getting a ~10% return in a 2 month period. But how do I filter for those particular stocks ?

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