Wednesday, December 11, 2024

Is Santa Claus Coming to Town? 🎅

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Trump in office
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Is a Santa Claus Rally Coming to Town This Year?

Matt Benjamin, Senior Markets Expert, The Oxford Club

Matt Benjamin

Every year I look forward to the last few days of December... it's a very special time.

For Christmas?

Nope.

For the so-called "Santa Claus rally."

This is a relatively reliable phenomenon in which the market delivers a short, sharp rally over the last five trading days of December (and the first two of January), as measured by the S&P 500. According to the Stock Trader's Almanac, this rally has been good for an average 1.3% gain from 1950 through 2022.

This year, that rally - if it happens - would begin on Tuesday, December 24, and last through Friday, January 3.

While Santa doesn't always show - the S&P 500 suffered substantial drops of 3% and 2.3% around Christmas in 2014 and 2015, respectively, and the market was down slightly last year over those seven days - in some years, the rally is quite dramatic.

See the Data Here
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