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On this 21st of December, when the Nifty shed 400+ points in a single day, there was a lot of panic on the news etc.
I heard an analyst say that this could be because of the "December Effect" !
What is this December Effect and why you should know about it ?
1/n
#marketcrash
I heard an analyst say that this could be because of the "December Effect" !
What is this December Effect and why you should know about it ?
1/n
#marketcrash
The December Effect, more commonly known as the "January Effect" is a seasonal decrease in share prices in the month of December and an increase in prices in the month of January !
This is a very popular hypothesis but what's the logic behind it ?
2/n
#january #december
This is a very popular hypothesis but what's the logic behind it ?
2/n
#january #december
The logic behind this is that in Dec, investors sell there loss making shares to set off taxes against capital gains, causing the market to fall.
Then, in the next year buy those shares back, thus causing a rise in prices in January !
Sounds legit ! 🤔
3/n
#taxharvesting
Then, in the next year buy those shares back, thus causing a rise in prices in January !
Sounds legit ! 🤔
3/n
#taxharvesting
