Analysts expect the usual ‘Santa Claus rally’—but watch out if it doesn’t arrive
Published On Dec 23, 2024, 3:13 PM
Analysts are contemplating the potential for a 'Santa Claus rally' in the stock market, a phenomenon where stock prices typically rise during the holiday season. Despite the stock market showing strong performance in 2024, recent Fed actions have tempered expectations and have led to a smaller sell-off. Historically, December is a strong month for equities, and there’s speculation about whether this rally will occur later in the month. However, if it doesn’t, it could indicate troubling trends, reminiscent of past market downturns. Investors are advised to consider hedging against volatility, particularly in tech stocks, as the market approaches the end of the year.
Stock Forecasts
SPY
Positive
Investors should keep a close eye on tech stocks as they seem poised for potential gains if the expected rally occurs. However, those looking to hedge against possible downturns could consider protective options strategies on ETFs like SPY as insurance.
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