Will there be a Santa Clause Rally this Year?

WHAT IS THE “WEALTH EFFECT”

Courtesy: www.CertifiedMedicalPlanner.org

And … Will it Cause a Santa Clause Rally this Year?

The “WEALTH EFFECT” is the change in spending that accompanies a change in perceived wealth. Usually the wealth effect is positive: spending changes in the same direction as perceived wealth.

A “SANTA CLAUSE” rally describes sustained increases in the stock market that occur in the last weeks of December through the first two trading days in January. Explanations include the wealth effect, tax considerations, and the investing of holiday bonuses.

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Santa

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Assessment

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.

QUESTION: So, do you think we will have a Santa Clause rally this year?

Please be binary in your answer: YES or NO. Your thoughts are appreciated.

INVESTING, BUSINESS AND FINANCIAL PLANNING FOR DOCTORS

Comments Appreciated

THANK YOU

Comprehensive Financial Planning Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™

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5 Responses

  1. WEDNESDAY

    DJIA
    22,878.45
    +1,086.25
    +4.98%

    NASDAQ
    6,554.36
    +361.44
    +5.84%

    This is the very definition of a Santa Clause rally; no?

    Herbert

    Like

  2. THURSDAY
    23,137.47
    +259.02
    +1.13%

    Herbert

    Like

  3. Santa Clause Rally

    Dr. Marcinko – are you prescient?

    Holly

    Like

  4. Go SANTA!
    What a rally.
    Jean

    Like

  5. 2022
    Not this year!
    Shrem

    Like

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