January effect: Citadel Securities says big money to flow into stocks this month
CNBC••entertainment
Key Points:
- The S&P 500 has started January with three positive trading days, reflecting a historically strong period for new capital inflows into stocks, according to Citadel Securities data.
- January typically sees the highest average monthly equity mutual fund purchases since 1984, with the S&P 500 being positive 62% of the time since 1928 and the Nasdaq 100 up 70% of the time since 1985.
- The "January effect," driven by the deployment of retirement contributions, year-end bonuses, and discretionary mandates, often leads to market gains following the holiday pause and tax-loss selling.
- Despite geopolitical tensions involving the U.S. and Venezuela, major indices like the S&P 500 and Dow Jones Industrial
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