In the first half of 2011, the Yukon enjoyed another gold rush, with a surge of exploration companies seeking a new mother lode in the largely unexploited wilderness. But the excitement was unsustainable.

The January Effect is one of the more predictable occurrences in the equity market—provided the right circumstances. When the market decides its “risk-on” time, small cap stocks will shine.

If you’re brave enough to time the small cap cycle back and forth, you can rack up some great returns. Just be ready for an alternating performance cycle.