Tag Archives: investor strategies

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.

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