Will a Santa Claus Rally Set Up a Strong 2026? Here's My Take on the Year-End Window.

During the last five trading days of December and the first two trading days of January, the stock market has historically rallied at an above-normal rate, 80% of the time, with an average return of 1.3%. The phenomenon known as the Santa Claus rally appears to be underway as of Christmas Eve, with all major indexes in the green on Dec. 24, the start of the "Santa Claus" market period.So, if a Santa Claus rally occurs, what does that signal for the year ahead? And if it fails to fully materialize, would that be an indicator of a looming downturn?All things being equal, a Santa Claus rally is a positive sign. When it happens, the next year is usually positive. Still, that shouldn't be surprising; since 1926, the stock market has had a positive year about 70% of the time.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool