LPL’s Jeffrey Kleintop: Are we set for a ‘Santa Claus’ rally?
It has been a textbook year. That is, if your textbook is the Stock Trader's Almanac.
The following is the weekly market commentary for Jeffrey Kleintop, chief market strategist at LPL, for the week of Nov. 14, 2011. To view more from this report, click here.
It has been a textbook year. That is, if your textbook is the Stock Trader’s Almanac. The old stock market chestnut “sell in May and go away” proved to be good advice this year. But that was not the only old adage of Wall Street traders that worked in 2011 — they all worked.
This has been the year of the stock market cliché in that all of the time-worn axioms based on the calendar actually were worth following this year:
If this “year of the market axiom” pattern continues, what comes next? Perhaps a “Santa Claus rally” is in store for December. Markets must still move past the uncertainty of November that includes key policy events:
But then a year-end “Santa Claus rally” may cap off a volatile year of modest single-digit returns for stock market investors. What may be the trigger for the textbook year-end rise in the market known as a “Santa Claus rally?”
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