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.
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.