Many pros on Wall Street are banking on the return of the Santa Claus rally this year. And who can blame them… the S&P 500 and Nasdaq Composite are up 11% and 12%, respectively, this year. The Dow Jones Industrial Average is up 7% in 2019 — that’s no small achievement considering the terrible years financially for key components Caterpillar and Boeing.
Apple’s stock has surged 46% despite the Chinese economic slowdown and stress on its supply chain from less than ideal trade conditions.
Take this resilience of the market’s most important names and factor in an ever friendly Federal Reserve with respect to interest rates, and the stage is set for stocks to power higher into 2020, many veteran investors proclaim. In other words, get ready for the Santa Claus rally and all the joy it so often brings to investor bank accounts.
A Santa Claus rally is a trek higher in equities in the final week of December through the initial two trading days in January. Its precise cause has never been greatly explained — theories range from yearend tax considerations to people spending their fat bonuses to buy stocks.
MacDailyNews Take: Here’s to a very merry Christmas and a happy New Year for Apple shareholders, six days before Halloween!