Best month to invest in Stock Market — Investment Monks
Investment Gurus talk about “January effect” where investors get new funding and start investing in various “value stocks” and small cap stocks. Most investors think that January is the best month to invest.
There is another reason why January is also one of the best months — December selloff.
Investors selloff to harvest tax losses and have their money ready to be invested for the January run up.
Also, one more aspect that contributes to the run up is that Tax saving contributions. People contribute to their IRA, HSA in the last week of December, and that money is allocated to Index funds, Stocks in the first or second week of January after vacations hoping for a run up !
2023 January has been a great month so far for many company stocks and index funds. Did you benefit from the move up ?
Please share your comments.
Happy Investing !
