December is here โ and investors are starting to talk about one of the most famous phenomena of the stock market: Santa Rally.
What exactly is it, why does it happen, and how often does it really occur?
๐
What is the Santa Rally?
Santa Rally refers to the period when stocks often rise in:
โก in the last 5 trading days of December
โก and the first 2 days of January
Historically, this is a 7-day period of above-average performance.
๐ Why does the Santa Rally often occur?
๐น 1) Pre-Christmas optimism
Investors are feeling positive, sentiment is stronger than usual.