The Santa Claus Rally Of Stock Markets In 2021

by Brendan McDermid | Reuters

The Santa Claus rally has arrived, and many investors are looking to enjoy huge capital returns. Despite the fears of Omicron, the rally will continue to perform as expected.

What is the Santa Claus Rally?

The Santa Claus rally is a period in which stocks rise in value. The rally covers the last five trading days of the year and the first two trading days of the new year. It is a temporary movement within the market and not an indicator for future market performance.

Causes of Santa Claus Rally

The Santa Claus rally can be caused by many factors. Some include the inactivity by big Institutions in the market due to the holiday season. Retail investors enter the market to secure large capital gains thus causing a rally. Lastly, investors sell stock at the end of the year to offs...

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