According to statistics, they dont work in the month January. Is this a coincidence??
good theory, i agree. any other theories?
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According to statistics, they dont work in the month January. Is this a coincidence??
good theory, i agree. any other theories?
Related posts:
The reason that momentum stock strategies don’t work very well in January is because many mutual funds are rearranging their stock holdings in their mutual funds because many mutual funds sold shares of stocks in their portfolios before the end of the previous year in order to provide capital gains or losses to the mutual fund holders for the year ending and they are buying large quantities of shares of stocks in different companies which changes the dynamics of the entire stock market until it is known what new stocks the mutual funds purchased and how many shares of each stock were purchased. Once it is known what stocks the mutual funds purchased and how many shares, it becomes easier to use momentum stock strategies and the strategies will work better as time passes and more people become aware of where they should place their money for momentum trades.
I’ve never heard that before. I guess it just depends on what kind of strategies are used.