So what is the “Santa Claus Rally”?
I thought I would consult Wikipedia for an accurate description….
“A Santa Claus rally is a rise in share prices in the month of December, generally seen over the final week of trading prior to the new year. The rally is generally attributed to anticipation of the January Effect, an injection of additional funds into the market, and to additional trades which must, for accounting and tax reasons, be completed by the end of the year. The Santa Claus rally is also known as the December Effect.”
The January Effect relates to the fact that annual bonuses paid in December get invested in January.
So will Father Christmas come through for us this year? Have we been naughty or nice? Continue reading “A Santa Rally To End 2011”