Early January Effect Has Passed in U.S. Stocks: Chart of the Day
This article is for subscribers only.
What’s known as the January effect may have arrived even earlier than usual for shares of smaller U.S. companies this year, according to Steven G. DeSanctis, a strategist at Bank of America Corp.’s Merrill Lynch unit.
The CHART OF THE DAY illustrates how DeSanctis drew his conclusion, presented in a report yesterday. He compared this quarter’s performance of the Russell 2000 Index, consisting of companies whose median market value is $714.5 million, with a historical average.