Pre-Positioning for the “January Effect” (Small Caps)
InvestTalk
Hosts Justin Klein & Luke Guerrero, CFA | Wealth Managers and Investment Advisors
4.4 • 1.5K Ratings
🗓️ 24 December 2025
⏱️ 49 minutes
🧾️ Download transcript
Summary
Due to year-end tax selling, small-cap stocks have historically outperformed in January and we will explain why the January Effect happens and highlight specific small-cap ETFs investors might want to consider buying before the calendar flips.
Today's Stocks & Topics: Bristol-Myers Squibb Company (BMY), Market Wrap, Investible Assets, “Pre-Positioning for the “January Effect” (Small Caps)”, American Airlines Group Inc. (AAL), Steel Dynamics, Inc. (STLD), Mortgage Rates, Stock Screeners, Xylem Inc. (XYL), HCA Healthcare, Inc. (HCA), PayPal Holdings, Inc. (PYPL), Wall Street and Tariffs.
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Transcript
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| 0:00.0 | On radio, on YouTube, streaming live on invest talk.com, and for our podcast subscribers, this is InvestTalk. |
| 0:13.4 | Independent thinking, shared success. |
| 0:17.8 | Invest talk is made possible by KPP Financial, a registered investment advisor firm, serving clients throughout the United States. |
| 0:27.1 | Here is KPP Financial Portfolio Manager, Luke Guerrero. |
| 0:33.7 | Good afternoon, fellow investors, and welcome back to another episode of InvestTalk. I'm your |
| 0:41.5 | host, Luke Guerrero, and today is Tuesday, December 23rd, 2025. It is, in fact, the second to last Tuesday of this year each and every show I do each and every time I |
| 1:00.2 | say it I am shocked at how quickly the year has moved and from a training perspective I mean |
| 1:07.7 | it's almost almost over at this point. You know, we got a couple |
| 1:11.5 | short days coming up. You got liquidity, which tends to be drier this time of year. And before you |
| 1:18.0 | know it, it's going to be 2026. And just as people do within their lives, we at Investstock, we |
| 1:25.2 | at KPP Financial, decided to take a little time to reflect on what |
| 1:30.9 | 2025 brought us. And in this reflection, we have the idea of creating an InvestTalk holiday special, |
| 1:38.4 | which dropped on our YouTube channel just last week. It was, in my opinion, a pretty fun end of year episode to record where |
| 1:46.5 | Justin and I looked back at the biggest market themes of 2025 and highlighted some of the |
| 1:52.3 | lessons that we learned and what we can take from a knowledge perspective into 26. So if that |
| 1:58.9 | sounds interesting, and I hope it does, go check out the InvestTalk holiday special |
| 2:02.9 | free on our YouTube. |
| 2:04.6 | Just search InvestTalk with two T's. |
| 2:07.0 | And while you're over there, don't forget to subscribe |
| 2:09.8 | and turn the notifications on. |
| 2:11.9 | Now, in just a bit, we'll talk about today's market performance |
| 2:15.0 | and run down those show topics for you. |
... |
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