Since we’re officially into December, I thought it appropriate to mention Santa Claus. For the record, I’m totally against putting up Christmas decorations in early November but if you want to start decorating now….I won’t hold it against you.
But Monday’s are usually reserved for my Finance posts. Don’t you worry….I got you covered there because the Santa Claus Rally does pertain to the stock market. What is it you ask?
A “Santa Claus rally” is a historical trend where the stock market tends to rise during the last five trading days of December and the first two trading days of the new year. This seven-day period has historically shown strong returns, with the S&P 500 averaging about 1.3% gains and being positive approximately 79% of the time since 1950. The rally is attributed to investor optimism, year-end bonuses, and tax-related trading strategies, though it does not happen every year.
Just some food for thought if you happen to have some extra cash to invest this month. Happy investing!!
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