29 Dec 2021, 14:24

I’m sure some of you may have heard about the Santa Claus Rally at the end of the year. It is a self-fulfilling prophecy that investors use to predict how the stock market could turn out in the next year. Therefore, look out for the last 5 days of the year till the first 2 days of the next year. If the stock market ends up, then we could expect to see the next year doing well for stocks. However, if it ends down during this 7 day trading period, then expect the bears to come onboard and next year could be a difficult year instead.

So far, the rally has started well, therefore, let us see how this will turn out. Take note, however, nothing is 100% accurate in the stock market. We had a Santa Claus Rally in 2000 but, we all know the Dot.com crash happened after that. Still, the Santa Claus rally has a good percentage of accurate prediction on the stock market. And, you could still observe it to see how it turns out.

Here’s wishing you a happy 2022! 

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