SANTA CLAUS IS COMING TO FLOOR

Will bring Santa gift to the investors, and does again the Santa Claus Rally? So far, he has done, but there is strong chance to deliver more gains in US stock markets. December is typically investor friendly month. This month is the second most profitable one historically so the chance for more gains is really high. According to the Bespoke Investment’s statistics, in the last 50 years the Dow Jones gained on average 1.6% in December, posting gains 70% of the time.

By now, the S&P 500 has posted its sixth winning streak week. And, another indices like Nasdaq and DJIA rallied nicely as well in November and December so far. Officially the Santa Claus rally means the last 5 trading days of December and first two days of the New Year. The statistics are impressive, since 2009 the S&P 500 delivered within seven days positive return. Santa Claus Rally gains average 1.5% over the seven-day period, according to history of the markets.

We do believe the Santa Claus rally is already underway and the outlooks are really promising for more gains in US and European indices.

The BFM Assets Team.