We’ve had the kind of year where small caps could see a nice rebound in January. This so-called January Effect, goes one theory, is tied to tax-loss selling at the end of the foregoing year. The selling dampens prices for underperforming stocks at year’s end and results in a January ...

The rebound off market bottoms is usually explosive for small caps. Their average gain in the year following the past seven bear markets surpassed 30%, writes Viking Capital CEO John Sartz in the Nov. 21 edition of Investor’s Digest of Canada.

Legg Mason’s renowned market strategist, Michael J. Mauboussin, has published a new study, The Sociology of Markets. In this thought-provoking piece, Mauboussin says it’s important to know the sociology of financial markets – i.e. the main participants and their objectives, modus operandi, risk preferences, etc.