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January Effect: These Stocks Are Poised To Have A Stellar Month Biotech stocks tend to perform very well in the month of January. Historically, January tends to be a good month for stocks - especially small caps. This phenomenon is also known as the January Effect. The January effect was first identified in 1942, by investment banker Sidney B. Wachtel. Mr. Wachtel noted that small caps typically outperform their large cap brethren in January. In recent years however, the January effect has not worked as well (for various reasons) but it is something people p...
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