Title
The 'Other' January Effect And The Presidential Election Cycle
Abstract
The 'other' January effect posits that when January's stock returns are positive (negative), the remaining 11 months of the year tend to be positive (negative) as well. While no explanation is currently offered, this departure from market efficiency carries important implications for the portfolio management decision. Other research has shown that stock returns tend to be higher during the second half of the president's term than during the first half as a result of variations in fiscal policy across time. When the 'other' January effect is examined in the presence of the presidential election cycle, it seems clear that January holds greater predictive power during certain years of the president's term in office. Therefore, in portfolio management decisions, investors should not view either in isolation, but consider both together. © 2009 Taylor & Francis.
Publication Date
9-1-2009
Publication Title
Applied Financial Economics
Volume
19
Issue
17
Number of Pages
1355-1363
Document Type
Article
Personal Identifier
scopus
DOI Link
https://doi.org/10.1080/09603100802599589
Copyright Status
Unknown
Socpus ID
70449587601 (Scopus)
Source API URL
https://api.elsevier.com/content/abstract/scopus_id/70449587601
STARS Citation
Sturm, Ray R., "The 'Other' January Effect And The Presidential Election Cycle" (2009). Scopus Export 2000s. 11658.
https://stars.library.ucf.edu/scopus2000/11658