GLV - Is The January Effect Done?
We opined to our members in December that this year (2019) could see the largest "January Effect" in quite some time. The January Effect is the rebuying of closed-end funds after the wash sale window passes. Many investors sell their losers in November and December and rebuy them in January in order to capture the tax loss. As Blackrock Funds cites:
CEF discounts have narrowed in January in 16 out of the last 20 years. This consistency may be attributed to the "January Effect", which is a commonly accepted theory that attempts to explain the