Will there be a Christmas rally in the stock market?
2022.11.29 04:00
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Will there be a Christmas rally in the stock market?
Budrigannews.com – Tuesday saw positive macroeconomic data and pending statements from central bankers regarding potential monetary policy strategies ahead of the December meetings propel European markets higher.
However, pundits have already begun betting on whether or not there will be a Christmas rally this year.
According to MarketWatch, a historically bullish final stretch for U.S. stocks occurs between now and the end of the year, particularly just before and after Christmas.
Now that the is up 12.6% from its October low, better-than-expected U.S. inflation data appear to be bolstering anticipation of a year-end stock rally.
Admiral Markets says that if we look at the S&P 500’s performance over the last five sessions of the year and the first two sessions of the next year over the last 11 Christmases, we can see that the general trend over this time is upward. These experts point out that while 2014 and 2015 were down years, the average from 2010 to 2020 is still positive.
We have witnessed a significant rally in Europe since the middle of October, not only in the Ibex 35 but also in other European and Wall Street markets.”XTB stated that this raises the question of whether Santa Claus will present us with a rally as a present this year, with a continuation of rallies that will dispel the fear of uncertainty.”
These analysts further inquire:Will the price fall following the rallies that have taken place since mid-October, opening up a window of opportunity for investors who are waiting for the sales to kick off a new bullish wave and have few or no stocks in their portfolios?
Doubts exist at the corporate level.”We always point out that this is the time of year when many publicly traded businesses risk a significant portion of their annual profits. Many businesses’ earnings expectations would be lowered as a result of a poor or worse-than-expected Christmas campaign, which would hurt their theoretical valuations and stock market performance,” Link Securities argues.
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