'Santa Claus rally' for stocks is likely this year -- but you won't be opening presents until after Christmas

'Santa Claus rally' for stocks is likely this year -- but you won't be opening presents until after Christmas

The many advisers forecasting a “Santa Claus rally” for U.S. stocks are too eager. That’s because the only year-end seasonal strength worthy of being called a Santa Claus rally doesn’t begin until after Christmas. The Thanksgiving-until-Christmas period does not itself exhibit any statistically significant rally potential. To be sure, none of the advisers forecasting a Santa Claus rally after Thanksgiving bother to define exactly when it is supposed to begin and end. So refuting it is tricky. To do so, …