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Santa Claus Rally in Stock Market

It's the time of the year when Santa Claus news is dominating all the social media platforms we already use, but to find out that Santa joining the rally of the stock market, would kind of be weird too!
The internet and technology paved the way for anyone to trade and even become a professional trader with one click! Every day,millions of online trading transactions take place from all over the globe. These transactions take many forms.

Well, yeah Santa Claus rally happens in the stocks market when there becomes a sustained increase in the stock market in the week leading to Dec,25th. To find out more about that and know how to seize the advantages of markets increase in the holidays season, read on the coming lines.

What is the Santa Claus Rally?

It is one of the “calendar effects “ that takes place in late December as gains in the stock market increase. Some might attribute the rally to the vibes that the holiday season carries within, while others believe there are other financial reasons behind that. All in all, stocks usually tend to gain more at the end of each year and on the first days of January.

Why the Santa Claus Rally?

No one knows why exactly the Santa Claus Rally takes place, but they know how it might affect the new year stock markets indicators. According to “Stock Trader Almanac”, the Santa Claus Rally can be an indicator of the next year's stock market along with the first five days of January, and the January barometer.

One of the possible reasons is that the vibes of the holidays help retail investors become more positive about stock markets, therefore, investors buy stocks ahead of an expected rally in January, known as the January Effect. In addition, end-of-year bonuses and gifts allow more people to invest in the stock market.

Can You Seize The Santa Claus Rally?

Individual traders might benefit from long-term investments as the Santa Claus Rally creates high returns in such investments. So will there be a Santa Claus Rally this year? Let's all wait and find out what the coming days will carry for us!

Try to trade this season with the best online broker 9BullsFX, and enjoy the vibes of the end of the year.


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