Equity Research Analyst | CA Finalist | Value Investing | Ergophile | Productivity
Dec 24, 2020 • 8 tweets • 4 min read
On this 21st of December, when the Nifty shed 400+ points in a single day, there was a lot of panic on the news etc.
I heard an analyst say that this could be because of the "December Effect" !
What is this December Effect and why you should know about it ?
1/n #marketcrash
The December Effect, more commonly known as the "January Effect" is a seasonal decrease in share prices in the month of December and an increase in prices in the month of January !
This is a very popular hypothesis but what's the logic behind it ?
Once a 14 year old kid, who used to deliver newspapers, told his family friend that if he doesn't become a millionaire by the age of 30, he'll jump of the tallest building of his city !
Sadly, he didn't become a millionaire by 30 ! 😔
1/n #story
I'm sure nobody even remembered his outrageous claim after 16 years but that child.....that child is now the age of your grandpa and is worth $85 Billion !!! 😮
