What is a 'Santa Claus Rally'?

A Santa Claus rally describes sustained increases in the stock market that begin on December 26th and extend through January 2nd. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Term of the Day | INVESTOPEDIA Santa Claus Rally A Santa Claus rally describes sustained increases in the stock market that occur in the last week of December through the first two trading days in January. There are numerous explanations for the causes of a Santa Claus rally including tax considerations, a general feeling of optimism and happiness on Wall Street and the investing of holiday bonuses. Another theory is that some very large institutional investors, a number of whom are more sophisticated and pessimistic, tend to go on vacation at this time leaving the market to retail investors, who tend to be more bullish. Breaking it Down: A Santa Claus rally is a seasonal phenomenon, according to "The Stock Trader's Almanac," a longtime provider of... Read More » Related to "Santa Claus Rally" What is the January Effect The January effect is the tendency for stock prices to rise in the first month of the year following a year-end sell-off for tax purposes. Read More » Top 7 Market Anomalies Investors Should Know Market anomalies are a mystery and often unpredictable. Find out how these seven trade-able market anomalies may work... Read More » Digging Deeper Into Bull And Bear Markets Discover why it's important to know the characteristics of bull and bear markets, the two types of market conditions. Read More » Related Definitions Sucker Rally Sucker Rally refers to an unsupported price increase in an asset or market amidst an overall downward trend. Read More » Bear Market Rally A Bear Market Rally is a short-lived upward trend in prices during a longer-term bear market. Read More » Play Play is a slang term that describes the positive aspects of an investment decision. Read More » Over-Selling Over-selling is a common mistake made by salespeople who, in their eagerness for increasing their sale, push the customer to purchase more than they want. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com If you wish to unsubscribe, please click here, or manage subscriptions 114 West 41st St, floor 8 New York NY 10036 © 2018, Investopedia, LLC, All Rights Reserved | Privacy Policy