Followers of stock market anomalies will know that this is the time of year when the fabled Santa Rally is due to get under way. The good news for UK investors of course, is that a favorably-timed general election (paired with an outcome the market liked) has got things off to a solid start…
If you want someone to blame for the annual blizzard of Santa Rally headlines, look no further than Yale Hirsch, the founder of the Stock Trader’s Almanac. His research back in the 1970s sparked an enduring myth that markets tend to rise through the second half of December and into the new year.
A quick look at recent history suggests this doesn’t always happen (last year the market slumped in December only to recover in January). But that hasn’t entirely tainted enthusiasm for these kinds of seasonal events – although some scepticism is perhaps healthy… (which Miserly Investor (@miserlyinvestor) is always good at):
@miserlyinvestor
In fact, the Santa Rally is just one of several calendar effects that have turned heads over the years. Others include the Halloween effect, the January effect, the turn-of-the-month effect, the holiday effect and even the weekend…
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