Tag Archives: Burton Malkiel

The Santa Claus Rally refers to a seasonal stock market trend where prices increase during the last five trading days of December and the first two of January. Since 1950, the S&P 500 has averaged a 1.3% gain during this period, often seen as an indicator of market optimism. The rally is attributed to factors like holiday spending, investor sentiment, and year-end tax considerations. However, its absence has sometimes preceded market downturns. Investors use the rally to adjust portfolios, favouring both small and large-cap stocks. While historically consistent, the rally is not guaranteed, requiring thoughtful strategies and broader market awareness.

NOT putting all your eggs in one basket makes intuitive sense to many investors. Indeed, evidence indicates that putting more eggs in your basket may actually crack your portfolio, not protect it. Words: 515