Learn what the Santa Claus Rally is, its historical significance, and when it happens during the holidays. Find out how long this seasonal trend typically lasts, why stocks tend to rise, and how it has impacted the stock market over time. Discover whether the Santa Claus Rally matters for your investing strategy and what key dates and fundamentals you should focus on instead.
What is the Santa Claus Rally? It is a seasonal trend where stock prices rise during the final days of December and the start of January. This pattern, caused by factors like lighter trading volume and investor optimism, has occurred 78% of the time since 1950. You’ll learn why it happens, how today’s market dynamics have changed, and whether you should pay attention to it. We’ll also cover other seasonal trends in 2024 and other years, like the January Effect, and share why focusing on fundamentals and long-term strategies is far more important for investors. Beginners guide.
The Santa Claus Rally Explained: Why Stocks Rise and Important Dates
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