The Santa Rally

Several months ago, I took the entire history of the Dow Jones and broke down its performance by days of the year (btw, what the hell was I thinking??). As it turns out, the Santa Claus Rally is quite real.
By far, the Dow’s best time of the year is the 17-day period from December 21 to January 7. Over that period, the Dow has gained 3.39%—that’s more than 40% of the Dow’s annual capital gain, even though we’re talking about a period that’s less than 5% of the year.
The worst time of the year is from September 6 to October 29. Eighty years later, we still feel the effects of 1929.

Posted by Eddy Elfenbein on December 29th, 2008 at 12:27 pm

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