Kaletsky, Anatole, (2016), “The Three Fears Sinking Global Markets”, Social Europe Journal, 1 February
January is usually expected to be a good month for stock markets, with new money gushing into investment funds, while tax-related selling abates at the end of the year. Although the data on investment returns in the United States actually show that January profits have historically been on only slightly better than the monthly norm, the widespread belief in a bullish “January effect” has made the weakness of stock markets around the world this year all the more shocking.
Relevant Posts
- International Monetary Fund (2014) Global Financial Stability Report – Moving from Liquidity- to Growth-Driven Markets, World Economic and Financial Surveys, April.
- Sachs, Jeffrey, (2016), “The Global Economy’s Marshmallow Test”, Project Syndicate, 27 January