The Santa Claus Rally

Today marks the beginning of the Santa Claus Rally. Earlier this year, I crunched all the numbers of the Dow’s daily return from 1896 to present.
The best time of year is a 17-day period from December 21 to January 7. Over the last 111 years, the Dow has gained an average of 3.39% during that 17-day period.
To put that in some perspective, the Dow’s annual gain is 8.32%. This means that more than 40% of the Dow’s yearly gain has come during this brief stretch which is less than 1/20 of the entire year.

Posted by Eddy Elfenbein on December 21st, 2007 at 8:27 am

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