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Santa Claus Rally

Observant1
edited December 15 in Other Investing
The Santa Claus rally is a stock market phenomenon that typically occurs during the last five trading days
of December and the first two trading days of January. According to Stock Trader's Almanac (STA),
this rally has been good for an average 1.2% gain since 1969 (1.3% since 1950).
STA states: "Santa's failure to show tends to precede bear markets, or times stocks could be purchased
later in the year at much lower prices. We discovered this phenomenon in 1972."
There was a reverse Santa Claus rally in 2024-2025 when the S&P 500 sold off every business day
between Christmas and New Year's Day — a historic first for the index.
Will Santa visit Wall Street this holiday season?
What are your thoughts regarding the Santa Claus rally as a stock market indicator?

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“If Santa Claus should fail to call, bears may come to Broad and Wall.”
— Yale Hirsch

Comments

  • DrVenture
    A rally is looking less likely each day.
  • Observant1
    I'm not holding my breath for a Santa Claus rally this year.
    The reference period for 2025/2026 is December 24 - January 5.
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