If your investing tastes run more to small-cap issues than the giants of the Dow Jones Industrial Average and other major indexes, you could find 2010's best buying opportunities before the new year even starts - today (Tuesday) and tomorrow to be precise. That's the promise of the so-called "January Effect," historically one of the most reliable of the recognized stock market anomalies.
Although there are some minor variations, the primary thrust of the January Effect states that stocks do better in January than in any other month - and small stocks do better than large stocks, with the bulk of the gain realized from the final trading day of December through the middle of the following month.
While the first portion of that hypothesis isn't strictly true - historically, April has held a slight edge over January in general stock market performance - the small-stock portion has a strong record. In fact, in some years, small-stock gains in the first trading days of January have accounted for the sector's total advance for the entire year.
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The "January Effect" Could Offer Quick Gains for Small-Cap Investors
How to Profit From the "Evil Genius" of Goldman Sachs
When references are made to the world's "oldest profession," I sometimes wonder if we're not exactly referring to market manipulation. In this country alone, market operators have been employing all sorts of market manipulations for more than 100 years.
What may surprise you is that most of it isn't illegal or even improper; in institutional circles, it's actually viewed as shrewd business.
One such manipulation was put on display this week - a news development that had me howling in disbelief and left me in awe of the evil genius of Goldman Sachs Group Inc. (NYSE: GS).
But if we step back, there's a lesson here - a lesson that points to real potential profits if we stop to understand what's about to happen before our very eyes. It's a lesson that I preach to investors - that the institutions that operate the market and maintain its very framework, also "influence" that market's movements. In fact, this real-market "case study" confirms the profit strategy that I've set out in this special report.
These machinations are completely legal. But they do happen and those who understand that also have the opportunity to profit from that knowledge. And you don't even have to be part of the institutional elite to do so if you know what to look for.
Let me explain...
What may surprise you is that most of it isn't illegal or even improper; in institutional circles, it's actually viewed as shrewd business.
One such manipulation was put on display this week - a news development that had me howling in disbelief and left me in awe of the evil genius of Goldman Sachs Group Inc. (NYSE: GS).
But if we step back, there's a lesson here - a lesson that points to real potential profits if we stop to understand what's about to happen before our very eyes. It's a lesson that I preach to investors - that the institutions that operate the market and maintain its very framework, also "influence" that market's movements. In fact, this real-market "case study" confirms the profit strategy that I've set out in this special report.
These machinations are completely legal. But they do happen and those who understand that also have the opportunity to profit from that knowledge. And you don't even have to be part of the institutional elite to do so if you know what to look for.
Let me explain...
Upbeat Earnings Will Fuel the Bull Market's Next Leg
When it comes to the health of the U.S. stock market over the next few weeks, corporate earnings will tell the story. Alcoa Inc. (NYSE: AA) kicks off the third-quarter earnings season on Wednesday. My guess is that over the next few weeks, as third-quarter earnings are reported, we will have the opportunity to witness […]
Long-Term Stock-Market Uptrend to Continue
Stocks moved lower for the third consecutive day on Friday, something that hasn't happened in more than three weeks, as the bulls just couldn't capitalize on a short-term overbought condition. Measures of selling pressure eased as the bears rested their knuckles after a two-day pummeling. Investors are worried. The big question – as always – […]
High-Quality Stocks Ready to Take the Lead in the U.S. Market
With the major U.S. stock market indices trading at recent highs, there is new evidence that the most recent phase of the advance was fueled by the lowest-quality stocks. But now it looks like higher-quality companies may be ready to take the lead: These shares will emerge from their slumber, causing the Standard & Poor’s […]
U.S. Stocks: Winning Streak is Over, But Bull Market Continues
The winning streak is over. But the outlook for stocks remains upbeat. U.S. stocks on Friday suffered their first setback after six straight days of gains, but the damage wasn't severe. No news appeared to precipitate the decline, so chalk it up to light profit-taking. In the Friday session, the Dow Jones Industrial Average lost […]