As the calendar turns over each year, investors look forward to a popular trading phenomenon on Wall Street known as the "January Effect."
It occurs when small-capstocks see a boost as investors buy back shares they sold in December. But Steven DeSanctis, Bank of America Small-Caps Strategist, says it's unlikely to happen in 2012.
"Valuations aren't really that attractive for smaller stocks," he said, noting that there are better fundamentals in mid-cap and large-cap stocks. With market volatility as high as it has been recently, DeSanctis added, it makes a little more sense to stick with larger-cap stocks.