stock market anomalies

Stock market anomalies are patterns or behaviors in stock prices that contradict traditional financial theories, which suggest markets are efficient and prices reflect all available information. Examples include the January effect, where stocks often rise in January, or the value effect, where undervalued stocks tend to outperform overvalued ones. These anomalies can hint at underlying investor behaviors or market inefficiencies, suggesting that markets are not always perfectly rational. Understanding these anomalies can help investors make more informed decisions, as they may highlight opportunities for profit beyond standard investment strategies.