The Day-of-the-Week Effect in Stock Markets
In this episode, we explore the intriguing "day-of-the-week effect" in stock markets:
- What it is: A market anomaly where stock returns correlate with specific days of the week
- Key examples: The Monday effect (lower returns) and the weekend effect (higher Friday returns)
- Possible explanations: Individual investor behavior, corporate news release patterns
- Case study: Findings from the Warsaw Stock Exchange (2003-2013)
- Evolution over time: How and why these effects may diminish
- Implications: Challenges to the Efficient Market Hypothesis and potential trading strategies
We discuss how understanding this phenomenon can provide insights into market dynamics and efficiency. Whether you're a seasoned investor or just curious about market behaviour, this episode offers valuable perspectives on the complexities of stock market patterns.
