Have You Heard of the “January Effect”?

Ross Givens
Ross Givens Ross Givens is a veteran trader with over 15 years of experi...
April 2, 2026 | 2 min read
Have You Heard of the “January Effect”?

Here’s a quick question for you…

Have you heard of the January effect?

If you haven’t, today’s chart explains it.

Chart of the Day

This chart shows the inflows into stock funds and ETFs dating back to 1996.

While it doesn’t capture all the inflows into stocks, it’s a great proxy for the overall flows.

And as you can see January is by far the biggest month for stock inflows.

To put it in another way…

There’s big money flowing into the markets all through this month…

And if you’re not taking advantage of it – you’re getting left behind.

The good news for you (and the bad news for most traders)?

Most will likely miss it.

I explain more below.

Insight of the Day

Even as money flows in, expect retail investors to remain highly pessimistic.

Here’s an interesting chart showing stock market performance versus retail investor sentiment.

Source: @RyanDetrick via X

The bars show the S&P 500’s returns by year.

The brown squares show the difference in bullish versus bearish sentiment as measured by the American Association of Individual Investors.

Most years go as you expect.

If the market has positive returns, most retail investors are generally bullish.

And similarly, if the market has negative returns, most retail investors are bearish.

But in 2025, things flipped.

The market had a good return – while retail investors were bearish.

Call it what you want – a vibecession, or simple skepticism.

Either way, it creates a powerful opportunity…

Because it means that as money pours into the markets – these retail investors will keep missing out.

But you don’t have to let that happen to you.

Because in just a few hours at 11 a.m. Eastern later this morning…

I’m hosting a special LIVE training session to demo an old-school strategy that will allow you to leverage the massive incoming money flows to target “homerun” stock opportunities.

As I said, this strategy could already have helped you pick up two fast gains of close to 30%  in just the past few weeks alone (that’s TEN times better than the market).

But with money pouring into the markets right now, this could just be the start.

So click here to guarantee your free spot if you haven’t already…

And I’ll see you in just a bit at 11 a.m. ET.

iOS: https://apps.apple.com/us/app/goto/id1465614785
Android: https://play.google.com/store/search?q=goto&c=apps

Customer Story of the Day

"Fantastic! Doing well investing with Traders Agency and Ross Givens. Best decision I have made on this investing journey. Thanks.

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Ross Givens
Editor, Stock Surge Daily

Ross Givens

Written by

Ross Givens Chief Market Strategist

Ross Givens is a veteran trader with over 15 years of experience and a former VP at a major Wall Street investment bank. Specializing in small-cap stocks and momentum-driven plays, Ross identifies high-probability setups before they hit the mainstream. As Lead Strategist at Traders Agency, he has guided hundreds of successful trades and developed multiple flagship publications.

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