Santa Claus Rally

What Does Santa Claus Rally Mean?
A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations for the Santa Claus Rally phenomenon, including tax considerations, happiness around Wall Street, people investing their Christmas bonuses and the fact that the pessimists are usually on vacation this week.

Investopedia explains Santa Claus Rally
Many consider the Santa Claus rally to be a result of people buying stocks in anticipation of the rise in stock prices during the month of January, otherwise known as the January effect.

Filed Under: Buzz Words, Stocks

Related Terms

Behavioral Finance
Boston Snow Indicator
Christmas Club
Christmas Tree
Elves
January Effect
Rally
Sucker Rally
Technical Rally
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The Frosty, Festive World Of Investing - From Santa Claus rallies to evergreen loans, Wall Street can be a veritable winter wonderland for investors.
Gifts For Financial Geeks - Put one of these unique offerings under someone's tree this year.
'Twas the Night Before Christmas - Here's our investing adaptation of an old holiday classic.

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