Santa Claus rally refers to the tendency for market to rise ...
Santa Claus rally refers to the tendency for market to rise in the last 5 trading days of the current year and the 1st 2 days of the new year.
The bulls think so but there are real challenges such as Omnicron spreads which are causing countries to reimpose restrictions or lockdowns, the Fed withdrawing liquidity and increasing interest rate in 2022, and rising inflation amongst all things.
The bulls think that while Omnicron is highly contagious, it is not as deadly considering the high rate of vaccination coupled with boosters. In addition, Countries are not inclined for a full shutdown and supply chain bottlenecks will ease (eventually) and any rate hikes will be slow.
On balance, I think there would still be a Santa Claus rally as I learned that the S&P 500 tends to rally in the last week of December based on historical data. It is likely that it will hit new highs later this month. This would indeed call for a celebration 🎉.
The bulls think so but there are real challenges such as Omnicron spreads which are causing countries to reimpose restrictions or lockdowns, the Fed withdrawing liquidity and increasing interest rate in 2022, and rising inflation amongst all things.
The bulls think that while Omnicron is highly contagious, it is not as deadly considering the high rate of vaccination coupled with boosters. In addition, Countries are not inclined for a full shutdown and supply chain bottlenecks will ease (eventually) and any rate hikes will be slow.
On balance, I think there would still be a Santa Claus rally as I learned that the S&P 500 tends to rally in the last week of December based on historical data. It is likely that it will hit new highs later this month. This would indeed call for a celebration 🎉.
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