It is no secret that the past week has brought upon turmoil in the stock market. Driven largely by a drop in oil prices that should be a boon for consumers and the devaluing of the Russian ruble, the stock market has dropped about 5% in the last two weeks or so. But if yesterday is any indication it is that time of year for a SANTA RALLY!
Santa rallies typically happen about a week or so out from Christmas where the stock market recovers previous losses and goes on a little winning streak for the next week or so. Part of the reason is that some mutual fund managers, who didn’t make their gains for the year, are going to be chasing performance and injecting more money into the market, which can boost stock prices. And the fact that the U.S. economy is doing pretty well compared to the rest of the world is another reason to celebrate.
Personally, this doesn’t mean anything to me because I am just going to continue to contribute to my investment accounts and keep plugging along, but it should provide a nice little gain for the stock market (if history is any indicator) for the end of the year.
This will be my last post potentially until after Christmas. Mrs. ROB, myself, and z dog, are packing up the car and driving home (a very long drive). So hopefully, I will be able to catch up on this blog after Christmas of next week. Until then, I hope everyone has a wonderful holiday season!