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
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?
+ Follow
+0