I see the magical words “Santa Rally” bandied around all the time and I thought it might be useful for Readers to summarise the info on this from the 'UK Stockmarket Almanac 2016’ so we get a clearer understanding of what it really means (you can buy the Almanac for 2017 from Wheelie‘s Bookshop but I note it is quite expensive at the moment - I am delaying buying a copy until into 2017 when the price usually drops. Once a Value Investor, always a Value Investor…..). I am sure majority opinion thinks of it as a December Rally but this is really not true at all. I had intended to include a bit on this in my Blog from last night regarding the Charts but by the time I had watched the Apprentice Final I had pretty much timed out.
The Santa Rally is really just 9 Days around Xmas Day and New Year’s Day. The Almanac breaks it into 3 periods:
The FTSE100 Returns for these Days since 1984 are as follows:
Note the 4th Day is strongest with the best Returns in the first 4 Days. However, according to the Almanac, the 4th Day is extremely volatile historically.
Day 9 is the weakest Day of the Xmas / New Year period. The first Day of the New Year tends to be good. Note that overall the Returns for the 9 Days are best at the start but then tend to tail off.
Short and sweet,
Welcome to my Educational Blog Page - I have another 'Stocks & Markets' Blog Page which you can access via a Button on the top of the Homepage.
Please see the Full Range of Book Ideas in Wheelie's Bookshop.