🟨 January effect - SPX vs RUT

2022년 12월 16일

WHAT IT IS
Since 1988 the Russell 2000 has outperfomed the SPX 73.5% of the time during the end of December into 1st of January.

Classical David vs Goliath. Read more below👇

THE DETAILS
Testing from 1988 to 2021 the period of 15th Dec through to 1st Jan, we see that Russell 2000 has outperformed the SPX 25 out of all 34 years.

This is a win rate of 73.5% . Moreover, the times the Russel outperforms the SPX were greatly oversized when the Russell underperforms. Gains in the years of outperfmrance are 5 times bigger. Totals outperformance vs Total underperformance is (42.80% vs -7.81%).

And there was only 1 year (1988) when there was a loss larger than 1%. The last few years we have not been so consistent but it is worth the consideration.