Yes, Virginia, there is a Santa Claus - rally!

As we approach year end, investors wonder, will there be a Santa Claus Rally? When a rally does occur, the market makes larger than usual gains at the end of December – early January. Historically the market rallies in December roughly 3 out of every 4 years.

 

IBD chart

Chart from Investor's Business Daily

 

Stocks surged Wednesday of this week, leading investors to believe there will indeed be a Santa Claus rally.

Markets are driven by myriad factors but based on recent performance, and taking history into consideration, there’s a good chance there will indeed be a rally.

 

 

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