Content overview: “No Early Santa Claus Rally: Why the Real Year-End Stock Gains Arrive Later”. Every autumn, market commentators start talking about a 'Santa Claus rally,' but the data suggests that the famous year-end surge doesn't actually begin until the final days of December. The term, popularized by the Stock Trader's Almanac, specifically refers to the last five trading days of the yea The term, popularized by the Stock Trader's Almanac, specifically refers to the last five trading days of the year and the first two of January.
Historically, the S&P 500 has gained an average of 1.3% during that seven-day window since 1950, according to LPL Financial. In contrast, the broader fourth quarter often sees choppy trading, with October and November prone to volatility from earnings, Fed decisions, and midterm elections. Investors who buy in early December hoping to front-run the rally may be disappointed. This listing links straight to the original page, where the content is available in full.