(NovaPoint is new with us but you can already appreciate the thought that goes into their market coverage. This one is short but sweet . . . perfect for plugging right into your client communications in the holiday season.)
With Christmas on the way, one investing question that comes along this time of year is whether or not there will be a Santa Claus Rally in the stock market.
The Santa Claus Rally is a year-end phenomenon where investors are looking for better than coal in their investment stockings. According to the Stock Trader’s Almanac, the time period to measure the rally is the five final trading days of the year and the first two trading days of January.
Since 1950, the S&P 500 Index has recorded a positive return on 56 occasions. The average increase over those seven trading days has been +1.3%.
Whether it is optimism surrounding the U.S. consumer spending money, institutional positioning ahead of the new year, or just the holiday spirit, the impact has been a positive one over the years.
