STOCK MARKET TRIFECTA: A Good January Launch for 2023

By Staff Reporters

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  • The stock market just confirmed a rare trifecta of bullish indicators that suggests big upside in 2023.
  • The trifecta included a Santa Claus rally, positive returns in the first five trading days of the year, and a positive January.
  • On other occasions when the bullish trifecta occurred after a bear market, stocks were higher 100% of the time in the following year.
  • RELATED: https://medicalexecutivepost.com/2022/12/28/what-is-the-santa-claus-stock-market-rally/

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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.

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