Anomalies in Stock Markets

Market anomalies are patterns or irregularities in stock prices that can't be fully explained by traditional financial theories like efficient markets. They include phenomena like consistent outperformance of certain stocks, persistent calendar effects (e.g., January effect), or price movements that contradict typical expectations based on available information. These anomalies suggest that markets may sometimes behave unpredictably due to factors like investor psychology, behavioral biases, or market inefficiencies. Understanding anomalies helps investors and researchers identify where opportunities or risks might exist beyond what standard models predict.