Will Santa Show Up for the Markets This Year?
Typically, September and October are considered two of the softer months for the markets, while November and December are traditionally stronger. This year has been the opposite, with a surprisingly solid September and October. By the end of October, I was feeling optimistic – with two of the more volatile months in the rear-view mirror, a strong finish to the year seemed likely. Unfortunately, that optimism didn’t pan out, as November came in weaker than usual and barely avoided slipping into the red.
Now December is here, and I’m not sure what to expect. December is usually a strong month for stocks, thanks to what’s known as the Santa Claus Rally. But some analysts are suggesting we may not see Santa’s visit this time around, which got me wondering why a month that’s typically upbeat might fall short. So why do analysts think Santa may sit this year out? Let’s take a brief look – but first, what makes December a strong month?