League table: which stock market has the strongest ‘Santa rally’?

Investors have come to expect the stock market to rise every December. New research shows that the ‘Santa rally’ is no myth – and reveals the country where it is biggest

The “Santa rally” – a good run for stock markets in the run-up to Christmas – sounds like an investment myth. But it is alive and well, an authoritative analysis of the data across the world’s major developed markets has established.

Every one of these markets – including Britain, America, Europe and Hong Kong – has tended to produce better returns in December than in the other months of the year, according to S&P Dow Jones Indices, the company behind the benchmark S&P 500 index of American shares.

The firm said it had designed “a simple test to measure December’s profitability for investors”. Each market was given a “Santa Score” by dividing its average return each December by the average annual return. Since there are 12 months in the year, a Santa Score of one 12th (about 0.08) would be expected in the absence of any seasonal effect.Read the full article at: http://www.telegraph.co.uk/finance/personalfinance/investing/shares/11252418/League-table-which-stock-market-has-the-strongest-Santa-rally.html

By |2016-10-12T21:02:00+01:00November 25th, 2014|News|

About the Author:

mm
Local independent financial advisers based in Haxby, York. Corville Wealth Managements offers professional and straight forward advice to all clients.