I know its a little late in the year , but who or what is the december effect ? Is this pervasive only in equities?

QuoteOriginally posted by: quantieI know its a little late in the year , but who or what is the december effect ? Is this pervasive only in equities?December effect is a spike in the number of arrests for driving drunk deers The official technical "theory" I think goes that only people who do tax losses or have no life want to trade in december Therefore, not too many buy orders...Effect supposed to be observed in equities. Naturally, fundamentalists say that if there was such effect, people would short in Nov and buyback in the end of Dec, creating Nov effect, etc

Interesting , There should be people in the forum, who are trading this effect?

short in Oct and buyback in the end of Nov, creating Oct effect, ......short in Dec and buyback in the end of Jan, creating Dec effect, ......