Today's question yielded mixed answers. I wanted to understand if the optimism of the new year makes people more bullish about the stock market, driving up the prices of stocks.
Apparently, according to the January Effect, many traders will sell their losing stocks in the first week of January for tax purposes, resulting in a devaluation of the stocks. I don't know how reliable this is, but if you want to look into it further, this article is a good place to start: http://tradingsim.com/blog/january-effect/ .
Another piece I came across stated that the market sees highs in the first week of January, citing my sentiment about the optimism of the new year, as well as the January effect actually resulting in more buying after the initial selling deluge (see http://finance.zacks.com/stocks-increase-decrease-after-new-year-11027.html).
I guess this is a "draw your own conclusions" kind of day!
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