January effect: 200 years of evolution in the us stock market

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2018

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LLC “СPС “Business Perspectives”
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Abstract

This paper is a comprehensive investigation of the January Effect evolution in the US stock market over the period 1791–2015. It employs various statistical techniques (average analysis, Student’s t-test, ANOVA, Mann-Whitney test) and a trading simulation approach to analyze the evolution of this anomaly. The results suggest that January effect during the XVIII–XXI century passed the way from rise to fall. The rise of the January Effect starts in the end of the XIX century and this anomaly mostly disappeared in middle of the XX century. Nowadays the January Effect is not present in the US stock market, but even today January stays one of the best months for purchases in the US stock market.

Keywords

гіпотеза ефективного ринку, гипотеза эффективного рынка, efficient market hypothesis, фінансові ринки, финансовые рынки, financial markets, календарні аномалії, календарные аномалии, Calendar Anomalies

Citation

Plastun, A. January effect: 200 years of evolution in the us stock market / A. Plastun, V. Plastun //Geopolitics under Globalization. - 2(1). - 27-33. doi:https://doi.org/10.21511/gg.02(1).2018.04.

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