What is the truth behind 'Santa Rally' market myth?

Analysed more than 30 years of data

Laura Dew
clock • 1 min read

Stockmarkets are more likely to rise in December than in any other month, according to Schroders' research covering more than 30 years of data.

Over the 33-year period, the data surveyed four indices (MSCI World, FTSE 100, S&P 500 and Eurostoxx) and found markets rose 75% of the time in December compared to falls in June, August and September. The most extreme case of monthly disparity was for the MSCI World index, which finished higher on 22 December more than 79% of the time. The statistic supports the so-called ‘Santa Rally' idea, which has perpetuated markets for years, where strong performance occurs in equities in the lead-up to Christmas. One theory behind this, Schroders said, is investor psychology; seasonal goodw...

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