What Is The Santa Rally?

Will Santa bring the gains?

The Santa Rally is the perception that December is a very good time for the markets. Data from IG shows that since 1985 the FTSE100 has gained over 2% during the month 83% of the time. Data from Schroders shows that global markets rise during 78% of Decembers since 1987, with stock prices up on average 1.7%. The chart below shows the increase in the S&P 500 during the last five days of the year and the first two days of January:

Source: https://www.cnbc.com/2019/12/20/official-santa-claus-rally-period-begins-next-week.html There is no solid evidence to identify why this happens but theories range from goodwill to managers re-balancing portfolios, lower volume trading moving the markets and even people investing Christmas bonuses. After the incredible year the markets have seen it would be hard to beat some of the gains from previous months but hopefully it will be another green one none the less! Follow me on eToro and let me do the trading for you!


Recent Posts

See All

ยฉ2020 by FollowMyTrades


Caution: This website is for educational purposes only. Trading involves the possibility of financial loss. Only trade with money that you are prepared to lose, you must recognise that for factors outside your control you may lose all of the money in your trading account. Many brokers also hold you liable for losses that exceed your trading capital. So you may stand to lose more money than is in your account. Followmytrades.co.uk takes no responsibility for loss incurred as a result of you copying our trades. By signing up as a member you acknowledge that we are not providing financial advice and that you are making the decision to copy our trades on your own account. We have no knowledge on the level of money you are trading with or the level of risk you are taking with each trade. You must make your own financial decisions, we take no responsibility for money made or lost as a result of our ideas we share  on forex or stock market related products on this website, email or other electronic means. Past performance does not guarantee future results. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with eToro. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. eToro is authorised  and regulated by the FCA.We are not authorised to provide financial advice. By continuing to remain on our website you agree that you have read and agree to the Terms and conditions.

Privacy Policy