The Hamptons Effect is the phenomenon where financial markets see an increase in trading volume once traders start to return from a long weekend.The Hamptons effect is a term for the decrease in stock price movement that occurs just before (and sometimes during) Labor Day weekend. The term was first coined by a Financial Crisis Inquiry Commission member in 2001, who attributed his observation of the phenomenon to brokers who were unwilling to cancel scheduled vacations during this part of the year.Every year during the Labor Day weekend, the Hamptons effect takes over. It's a financial phenomenon that has long been attributed to the influx of New Yorkers who head out to their favorite seasonal getaway spots in the summertime, only to be followed by the return of these same individuals when they return from their summer vacation (or longer) in September. While it may seem like a totally random occurrence, there's a science behind this effect and it has been studied extensively by researchers for many years.
