Can You Gain an Edge with the January Effect? We Have the Answer Inside. For many people, the new year is a time to press the reset button — to whip into shape after the indulgences of the holiday, tackle their goals, and improve their overall performance. There's a perception that the stock market undergoes a similar revitalization, in the form of rising prices. This idea that the market tends to perform better at the start of the year is called the "January Effect." The term was coined by Sidney Wachtel, an economist and banker who studied seasonal movements in the stock market. He expanded upon the idea in his 1942 paper, "Certain Observations on Seasonal Movements in Stock Prices." RECOMMENDED LINK Something VERY strange is happening in this zone of the market It sounds super strange, but luckily we caught it on camera... These 47 seconds will change everything you think you know about the market. (They certainly did for me.) My friend Hailey couldn't wrap her head around the idea, either. But just 47 seconds after I showed her how it works... She grabbed nearly one thousand dollars out of thin air. Click here to watch Hailey make $920 in less than a minute. There are several possible reasons why stock prices seem to go up. It could be because people were selling off stocks in December for tax purposes. It could be because people just received a bonus in January. Or it could be because, with a hectic holiday schedule from November to December, people have more time to devote to investing in January. Whatever the cause may be, the TradeSmith team is more interested in what the data is telling us now about the accuracy of the January Effect theory. So let's take a look. Using the SPDR S&P 500 ETF (SPY) as our reference point, from January 2009 to January 2022, stocks were up 57% of the time in January and down 43% of the time. Going back even further, since 1993, we see the exact same numbers, with positive returns in January 57% of the time and losses 43% of the time. RECOMMENDED LINK This one trade could pay you $1,000 It's time to QUIT... Quit buy and hold investing now! It's dead! And start using this new income strategy my team has developed. It's one easy-to-follow trade (repeated three times per month) that could pay you an extra $1,000 or more every single month. I walk you through it in this new video I just recorded. If you're looking to gain an edge, it appears unlikely you'll find one by investing more heavily in January than other people. What's more important is understanding the market landscape around you, and when I was on episode No. 260 of the Stansberry Investor Hour in May, I said it was time to stand up and be a "real investor." Although that was several months ago, I still believe that many of the concepts shared are timeless, which is why I put together this outline of what it actually looks like to be a real investor and take control of your financial well-being. In addition to adding the real-investor tips to your arsenal of resources, I've also been working on something pretty cool with our team on how to navigate 2023, and I'm excited to share more about it next week. I'll talk to you tomorrow. Enjoy your Thursday, Keith Kaplan CEO, TradeSmith P.S. Analysts, TV experts, and newsletters are contradicting each other on what the next big move will be. Some expect a recovery, while others suggest dangerous times ahead. It's confusing, but it doesn't have to be. "Cash Out Codes" — a stock volatility metric — helps you know whether your stocks will withstand the market's next big move. Proven in thousands of backtests, Cash Out Codes could have gotten investors out before major corrections. Scan your stocks to clean out losers today and find out which could rake in returns in this market. Best of TradeSmith The chart below represents the best-performing open positions over the last two years, as recommended by our software. More Investable Information at Your Fingertips TradeSmith's 2023 Guide to Beating Inflation Bitcoin Is Far from Dead (Here's Proof) This Could Be the Amazon of Gene-Editing Stocks Electric Vehicles Passed This 5% Tipping Point – Here Are 2 Investments to Make 866.385.2076 | support@tradesmith.com ©TradeSmith, LLC. All Rights Reserved. You may not reproduce, modify, copy, sell, publish, distribute, display or otherwise use any portion of the content without the prior written consent of TradeSmith. TradeSmith is not registered as an investment adviser and operates under the publishers' exemption of the Investment Advisers Act of 1940. The investments and strategies discussed in TradeSmith's content do not constitute personalized investment advice. 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