The Comprehensive Guide to

Passive Income Investing


Learn the secrets of how Paul Tracy generates over $XXX,XXX per month in passive income!

How to Become Financially Independent Through Passive Income Investing

What is a Santa Claus Rally?

A Santa Claus rally is a surge in the stock market that occurs between Christmas and New year's Day.

How Does a Santa Claus Rally Work?

Over time, the stock markets have rallied between December 25th and January 1st more often than they have not. There is no clear explanation for this phenomenon; however, it may result from the investment of holiday bonuses, investments made in advance of the closing of the fiscal quarter, or in anticipation of the rise in the markets usually experienced during January each year when business resumes and demands are higher.

A Santa Claus rally is not a sure thing. Indeed, changes in the S&P, Dow Jones, and NASDAQ over the past several years show mixed results during the period, especially during general downturns and bear market conditions.

Why Does a Santa Claus Rally Matter?

Trader's are unlikely to take this phenomenon into consideration when making decisions during this timeframe, but it is an interesting statistical observation of historically recurring market trend.

Ask an Expert about Santa Claus Rally

All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Santa Claus Rally.

Be the first to ask a question

If you have a question about Santa Claus Rally, then please ask Paul.

Ask a question
Paul Tracy
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.