Opposite of what many on Wall Street believe, there appears to be no real correlation between the stock market’s performance during the last week of the year and the year to come. Some superstitious traders believe that if the stock market does not perform well in the last week of the year, the year to come may be a bear market.
Key Takeaways:
- Many on Wall Street believe the contrary. Perhaps the most well-known manifestation of this belief is the saying that “if Santa fails to call, bears may come to Broad and Wall.”
- The reference is to the Santa Claus Rally period that encompasses the week immediately after the stock market’s Christmas break.
- Try as I might, however, I can’t find any support for this. If anything, in fact, there is some very modest evidence that the stock market actually does better if the market falls between Christmas and New Year’s.
“Many on Wall Street believe the contrary. Perhaps the most well-known manifestation of this belief is the saying that if Santa fails to call, bears may come to Broad and Wall.”
http://www.marketwatch.com/story/what-this-weeks-stock-market-will-tell-you-about-2017-2016-12-26
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