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Santa Claus Rally

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What Is a Santa Claus Rally?

By , Contributing Writer, Money Morning -

Santa Claus rally

As we head into the final stretch of 2016, talk of Santa Claus is escalating.

The questions on investors' minds now are what is a Santa Claus rally and will we be seeing one in 2016.

Here's our answer to both of those questions...

What Is a Santa Claus Rally?

By , Contributing Writer, Money Morning -

At the end of the year, investors frequently ask if we'll see a Santa Claud rally this year. But what is a Santa Claus rally and how does it affect stocks?

What is a Santa Claus rally? It's a question we hear every December as the media talks about a possible stock market rally at the end of the year.

Here's what the phrase "Santa Claus rally" means and whether we'll see one on Wall Street in 2015...

Santa Claus Rally 2014 Is Not the Real Reason Stocks Will Rise

By , Associate Editor, Money Morning • @KyleAndersonMM -

last five santa claus rallies

The term "Santa Claus Rally" refers to a seasonal bump in stock prices over the last week of the year - specifically, the last five trading days of December, and the first two of January. This year it falls from Dec. 24 to Jan. 5.

The Dow has seen a Santa Claus Rally more than 77% of the time since 1896. Over that 117-year span, the Dow Jones Industrial Average has gained an average of 1.7% during that week.

Will we see another seasonal rally this year? Our experts say yes, but not for the reason you might expect...

Why the 2013 Santa Claus Rally Will Be the Best in Years

By , Money Morning -

Since 1929, the Dow and the S&P 500 tend to book their biggest gains of the year in late December. Last year’s “Santa Claus” rally was so-so, with average gains of less than 1%. Not exactly coal in the stocking, but not what was on investors’ lists, either.

But 2013 is shaping up to be the best late-year surge in years…

Miracle on Wall Street: Will a "Santa Claus Rally" Bring Christmas Cheer to Investors?

By , Managing Editor, Money Morning -

Seasonal market indicators are often spotty, but the so-called "Santa Claus rally" has some solid statistical backing.

The Santa Claus rally lacks a concrete definition, but the gist of the theory is that stocks perform well in December – particularly in the period between Christmas and the first days of the New Year.

Indeed, December traditionally has been the best month for U.S. stocks. The Standard & Poor's 500 Index has posted positive returns in December 77% of the time since World War II, compared to 59% for all 12 months.

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