STI 1990-2015: Yahoo Finance
Does the ......The January effect is a hypothesis that the stock market tends to outperform in the first month of the year. The effect was first observed in 1942 by investment banker Sidney B. Wachtel and that small-cap stocks tend to perform better than the broader market in January.
There are a few reasons why stock prices tend to rise in January but I wanted to find out if the January effect holds true in Singapore as in the U.S.
Can investors simply ride the January effect and make decent gains simply by investing in the STI for the first month of every year?
I decided to do some research: I had a look at the STI chart and recorded how much the STI gained (or lost) from its opening price on Jan 1 to its opening price on Feb 1 from 1990 to 2015.
