Is the Stock Market's 'January Effect' Real?

The video discusses the January effect, a historical trend where U.S. stocks were believed to rise more in January than other months. This effect was prominent from 1940 to the mid-1970s, especially for small stocks, but has faded over time. By 2000, it became inconsistent and unreliable. The video also covers current market struggles in January 2024, with significant value loss. Other theories like the January barometer suggest January's performance predicts the year's market trend. The decline in the January effect may be due to market changes, such as a focus on large tech stocks and pre-priced expectations.

What are some reasons proposed for the fading of the January effect?

What impact has the focus on large tech stocks had on the January effect?