The Santa Claus Rally That Wasn’t

The so-termed “Santa Claus Rally” says that stocks have a high likelihood of rallying in the final trading days of the year (after Christmas), often extending into the first couple of days of the new year. The statistics on this seasonal pattern vary depending on who you ask and what timeframe is being used. Generally speaking, though, the consensus is that stocks have a greater than 60% chance of going up during this period, based on history.1

But Santa never arrived in 2022.

Instead, U.S. stocks gave up some of the strong gains posted from mid-October through the end of November, ending the year with a whimper.

The Santa Claus Rally Didn’t Happen in 2022

Source: Federal Reserve Bank of St. Louis 2

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When Is It the Right Time to Invest?

Amongst the many lessons that can be learned from market volatility, the most important lesson is not to time the market.

There is no right time to invest, but there are key forecasts and data available to help you make the most out of 2023.

The era of buy and hold maybe has evaporated except for Gold in the future as the dollar is replaced by another currency.