01 Feb 2002 From Gutenberg to Google
Posted at 16:16h in The Friday BriefAs we pointed out last week, the ‘January Effect’ never materialized. Typically, January’s market volume is among the highest of the year as 401-K’s and corporate retirement plans receive their largest contributions. In addition, investors come back to the markets in January to replace stock they sold for tax-losses at the end of the prior year. The scarcity of enthusiastic buyers and a general malaise among investors weighed heavily on last month’s markets. The S&P 500 declined 1.5%, the Dow declined .91%, and the NASDAQ fell by .82%. The S&P 600, the index of small companies managed a gain of just less than 1%. During the five Januarys prior this one, funds flowing into equity mutual funds averaged 8.8 billion dollars in the first two weeks. The first two weeks of this January saw the exit of $4.7 billion from equity mutual funds, according to TrimTabs, a fund tracking service.