What is the Santa Rally? Why the run-up to Christmas could be the season to invest
According to Bestinvest, global equities have delivered an average capital return of 1.68 per cent in the month of December
In 1972 Yale Hirsch, creator of the US Stock Traders Almanac came up with the phrase “the Santa Claus rally”. He had noticed that in the seven-day trading period between Christmas Eve and the second day of January stock markets around the world always appeared to rally.
Katharine Wooller, managing director at crypto wealth platform Dacxi, said in two thirds of the years since 1960, US stock market indices have ticked up by an average of around 1.3 per cent during the last week of December and into the first few days of January.
“In the UK, between 1985 and 2015, the FTSE has made an average gain of 2.26 per cent during December and risen in value in around 80 per cent of those years. It’s fair to say then that what has become known as ‘the Santa Claus rally’ is a real and regular, if not entirely predictable, phenomenon.”
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