The Best Time of Year for Stocks

We’re soon coming up on the famous Santa Claus rally. I crunch all the numbers for the Dow from 1896 through 2007. Historically, the best stretch for the market has come between December 21 and January 7. Of the 15 best days of the year for the market, six are in this period.
Over 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 16th, 2009 at 3:39 pm

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.