Financial expert: Santa Claus rally on the stock market – new highs expected

Financial expert: Santa Claus rally on the stock market – new highs expected

According to a report by www.businessinsider.de,

A Santa Claus rally in the stock market could bring new highs in major averages next week. Historical data showed stocks were higher 79 percent of the time during this trading window, with an average gain of more than one percent.

According to an analysis by Bank of America, this Santa Claus rally could push the S&P 500 to new record highs if the average gain of 1.6 percent is confirmed. Technical analysts such as Stephen Suttmeier emphasize the authenticity of the Santa Claus rally and point out that a failure to do so could be a possible warning sign of a weak start to the coming year.

The past 30 years show that in the five years without a Santa Claus rally, January was a bad month for stocks. Therefore, the absence of this rally could be a warning sign for investors.

The impact of this Santa Claus rally could mean massive gains for the stock market, assuming historical trends continue. However, a failure of this rally may signal signs of a weaker period in the market.

If Santa doesn't come, the bears could come to Broad and Wall. This quote alludes to the possible negative impact on the stock market that could be caused by the absence of the Santa Claus rally.