11/22/2011 1:05 PM ET
The chance of a year-end gift from the market always gives investors hope at this time of year. This year, though, the odds are slim. Here's why.
Just like little boys and girls now hanging their stockings by the chimney with care, many investors are hoping for a little holiday magic after a hard year. Unfortunately, a lump of coal is much more likely to be waiting for traders by Christmas than any so-called "Santa rally" that would boost their portfolios.
The Santa rally is one of those seasonal trends that market timers like to tout. One theory is that year-end rebalancing adds to buying pressure across most asset classes through the turn of the year. Others think the boost is caused by year-end bonuses being pushed into the market, or that it is a purely psychological rally, thanks to the general goodwill of the season (and the fact that many bears and short-side traders are on vacation).
But the idea of a market rally every December is suspect even in a good year -- and particularly troublesome in 2011.
/*
Here are five signs that the so-called Santa rally will not happen this holiday season:
Dangerous December generalizationsIn a 2009 column on this year-end phenomenon, columnist Mark Hulbert crunched numbers and found that December's "average" strength fails to account for severe volatility. "That's sort of like the man whose head is in the oven and whose feet are in the freezer and who, on average, feels just fine," Hulbert wrote.
Yes, the market generally goes up. How else did we get from Dow 2,500 in 1991 to Dow 11,500 now? And generally the market also goes up more in December. Since 1896, the Dow Jones Industrial Average ($INDU)has tacked on an average 1.2% each December compared with 0.5% gains averaged in the other 12 months.
But that's not entirely fair. Taking each month separately, June and July have slightly better average monthly returns than December -- so much for another market truism, "sell in May and go away!"
In short, investing based on generalizations is a dangerous tactic. Try selling investors on that "average" long-term performance of the Dow right now, and you probably will get laughed out of the room. Why would you manage your portfolio in December based on the same flawed logic?
Debt deadlines loomThe sovereign debt crisis in Europe and the failure of the U.S. congressional supercommittee are stark demonstrations of political gridlock and intransigent citizenry on both sides of the Atlantic.
The lore of the Santa Claus rally
That brinksmanship and dangerous rhetoric appear to be spooking the market, just as did the debt-ceiling debate over the summer that ultimately resulted in a downgrade to the U.S. credit rating and caused the market to plunge 15% in late July and early August.
Too many big issues are at play this holiday season for the markets to get their typical break from big news, and more bad headlines could further sour attitudes on Wall Street. The pain of the supercommittee's failure is already being felt, and even if the eurozone can break through its current spiral of debt-related problems, the market might react even more severely in the days before any such deal is struck.
Continued on the next page. Fund mentioned: iShares MSCI Brazil Index (EWZ).
Continued: Red-hot inflationSingle page12Next >RELATED ARTICLES5 big questions investors are askingHow banks are nickel-and-diming you for profitsDisney CEO takes Steve Jobs' placeInvesting: Stock market, money & financial investment advice - MSN ...Investing's $2.3 trillion revolution - 1 - index funds & ETFs ...US Commodities - MSN MoneyVIDEO ON MSN MONEY/*$.dap("&PG=INVPEB&AP=1402",600,250,"ConAd-1");Feedback /**/ var scp_UserRating=-1; down_arrow_hover= new Image(); down_arrow_hover.src = 'http://blu.stc.s-msn.com/br/scp/css/15/decoration/toolbar/rating/down_hover.gif'; down_arrow_normal= new Image(); down_arrow_normal.src = 'http://blu.stc.s-msn.com/br/scp/css/15/decoration/toolbar/rating/down_normal.gif'; up_arrow_hover= new Image(); up_arrow_hover.src = 'http://blu.stc.s-msn.com/br/scp/css/15/decoration/toolbar/rating/up_hover.gif'; up_arrow_normal= new Image(); up_arrow_normal.src = 'http://blu.stc.s-msn.com/br/scp/css/15/decoration/toolbar/rating/up_normal.gif'; var scp_thankyoutext = 'Thank you!'; var scp_thankyoualttext = 'You have voted on this'; var scp_votestext = '{0} votes'; var scp_votescount = 7; var scp_errmsg = 'Errors occured while saving your rating. Please try again later.'; var scp_yesvotes = 5; var scp_jsurl='MSNRRV2.aspx'; var scp_jsargs='rrct\x3doE0QuuCFWRgt\x252fxpt\x252fkHSJs57VE1CLazX0d\x252bTwJqkFcL2bGg2NfKHVpqPgCXgbdIuUFa8t51P4vt6v6f5PT176ph9gsCT7RAhLRTPlK5cUDUQS\x252bj6s8azFtLuZoTZL\x252ftWNt\x252bmxeRpdKfxZexOc5zlfXpdgpGsVI4cJdC0w0cgfB9xHhMwQKzVPIP2DvXwhT9W\x26values\x3dshFp7XlTQbexq2I491\x252fdUQ\x253d\x253d\x26rritemId\x3dTZsRd4pyoJ1qQ2wcthY8uozFjZTkTPGVe40tlZVkh\x252btU\x252b204uQgS\x252b9LzNSbL0603yEZC6Jz20aB4EU2TxForbw\x253d\x253d\x26rrpurl\x3dhttp\x253a\x252f\x252fmoney.msn.com\x252finvesting\x252f5-signs-a-santa-rally-is-not-coming-investorplace.aspx'; var scp_itemid = 'scp\x3abbcdiscussion\x3ab3450bb8-bb5b-4f58-a0e0-25dbc2a12050'; function BinaryRatingToolBar(ratingValue){scpjs.socialToolbar._handleBinaryRating(ratingValue);} Recommend7 votes71% Rating: You recommend this29% Rating: You don't recommend this ToolBarUpdateRating('scp\x3abbcdiscussion\x3ab3450bb8-bb5b-4f58-a0e0-25dbc2a12050','ratCntrlBinary'); jQuery.async('scp', function () { jQuery.scp.socialToolbar({"partnerId":"e70689f0-2848-458a-b8ae-965c0aac79c8","jsUrl":"http://us.social.s-msn.com/s/js/16.7/ue.min.js","enabled":true,"previewMode":false,"contentId":"cphs222y4n3j07quy5h0bgq9kvkhcge6","boardId":"00000065-02a6-0000-0000-000000000000","threadId":"b3450bb8-bb5b-4f58-a0e0-25dbc2a12050","urlParams":{"title":"","desc":"","image":"","url":"http://money.msn.com/investing/5-signs-a-santa-rally-is-not-coming-investorplace.aspx","s-url":"http://on-msn.com/vPuwtG"},"timesShared":7,"shareCountUrlBase":"http://social.msn.com/boards","settingsCookieDomain":"msn.com","showMiniTb":true,"showRatings":true,"showEmail":true,"showPrint":true,"showIM":false,"imagesDir":"","printUrl":"","sharingSites":[{"id":"1","name":"Messenger","icon":"http://media.social.s-msn.com/images/blogs/Messenger.png","smallIcon":"http://media.social.s-msn.com/images/blogs/Messenger-s.png","urlTemplate":"http://profile.live.com/badge?url=%7Bs-url%7D"},{"id":"2","name":"Facebook","icon":"http://media.social.s-msn.com/images/blogs/Facebook.png","smallIcon":"http://media.social.s-msn.com/images/blogs/Facebook-s.png","urlTemplate":"http://www.facebook.com/share.php?u=%7Bs-url%7D&t=%7Btitle%7D"},{"id":"3","name":"Twitter","icon":"http://media.social.s-msn.com/images/blogs/twitter.png","smallIcon":"http://media.social.s-msn.com/images/blogs/twitter-s.png","urlTemplate":"http://twitter.com/home?status=%7Btitle%7D+%7Bs-url%7D"},{"id":"4","name":"Digg","icon":"http://media.social.s-msn.com/images/blogs/digg.png","smallIcon":"http://media.social.s-msn.com/images/blogs/digg-s.png","urlTemplate":"http://digg.com/submit?partner=MSN&url=%7Bs-url%7D&title=%7Btitle%7D"},{"id":"6","name":"LinkedIn","icon":"http://media.social.s-msn.com/images/blogs/linkedin.png","smallIcon":"http://media.social.s-msn.com/images/blogs/linkedin-s.png","urlTemplate":"http://www.linkedin.com/shareArticle?mini=true&url=%7Burl%7D&title=%7Btitle%7D"},{"id":"7","name":"MySpace","icon":"http://media.social.s-msn.com/images/blogs/Myspace.png","smallIcon":"http://media.social.s-msn.com/images/blogs/Myspace-s.png","urlTemplate":"http://www.myspace.com/Modules/PostTo/Pages/?u=%7Bs-url%7D&t=%7Btitle%7D"},{"id":"8","name":"Google Bookmarks","icon":"http://media.social.s-msn.com/images/blogs/GoogleBookmarks.png","smallIcon":"http://media.social.s-msn.com/images/blogs/GoogleBookmarks-s.png","urlTemplate":"http://www.google.com/bookmarks/mark?op=add&bkmk=%7Bs-url%7D&title=%7Btitle%7D"}],"locale":"en-us","miniTbPositionRef":"ahead","strings":{"lc_rdcmnts":"Read comments","lc_addcmnt":"0","lc_rec":"Recommend","lc_eml":"Email","lc_shrintro":"I thought you would be interested in this: {0}","lc_im":"IM","lc_mor":"More","lc_ncmts":"{0}","lc_prt":"Print","lc_shr":"Share","lc_shrn":"Shared {0} times","lc_shrt":"Share","lc_vts":"{0} votes","lc_ivno":"You don\u0027t recommend this","lc_ivyes":"You recommend this","lc_yvno":"You didn\u0027t recommend this","lc_yvyes":"You recommended this","lc_ratingadded":"Thank you!","lc_ratingerr":"Could not add rating","lc_alrdyvote":"You have voted on this","lc_defml":"Email program","lc_hotml":"Hotmail","lc_gml":"Gmail","lc_yml":"Yahoo! Mail"},"omniAccount":"MSNPORTALSCP","ratingsControlId":"ratCntrlBinary","ratingsItemId":"scp:bbcdiscussion:b3450bb8-bb5b-4f58-a0e0-25dbc2a12050","appUri":"http://social.msn.com/boards","pageUrl":"http://money.msn.com/investing/5-signs-a-santa-rally-is-not-coming-investorplace.aspx","ratingTags":["00120065-0000-0000-0000-000000000000","00000065-02a6-0000-0000-000000000000","ART"],"fblkShow":true,"fblkAppId":"","fblkRef":"","fblkTrkName":"","fblkTrkVal":"","twtShow":true,"twtTrkName":"","twtTrkVal":""}); }); /**/ 3CommentsNewestOldestBestWorstControversialLittle_ Bit (Little_Bit190) 8 hours agobuck up tell your kids the truth and quit lieing to them... Santa isn't real. and Mom/Dad are broke they get 1 toy this yr. 4 2ReportSpamaiya238 hours agoMy best friend ,she just has announced her wedding with a m‘illionaire man who is a celebrity !they met via .Millionαirel○ving.C0M ..it is the largest and best club for c’elebrity and their admirers to chat online.You do not have to be rich or famous. ,but you can meet one , It's worthy a try,Maybe you wanna check it out or tell your friends!
That brinksmanship and dangerous rhetoric appear to be spooking the market, just as did the debt-ceiling debate over the summer that ultimately resulted in a downgrade to the U.S. credit rating and caused the market to plunge 15% in late July and early August.
3 7ReportSpamDoug (Out in the cold) 9 hours agoUntil unemployment moves down significantly, the backlog of bank-owned properties is drawn down and home prices move upward, there will be no rally ~~ Santa or otherwise.Yep .. and the USPS is closing the post office just down the road from Santa's house too..
6 2ReportSpamAdd a commentReportPlease help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.CategoriesSpamChild pornography or exploitationProfanity, vulgarity or obscenityCopyright infringementHarassment or threatThreats of suicideOtherAdditional comments(optional) 100 character limitAre you sure you want to delete this comment?jQuery.async('scp', function () { jQuery.scp.comments({"partnerId":"e70689f0-2848-458a-b8ae-965c0aac79c8","jsUrl":"http://us.social.s-msn.com/s/js/16.7/ue.min.js","strings":{"lc_shw":"true","lc_dtf":"%M/dd/yyyy %h:mm tt","lc_dtf2":"ddd %h:mm tt","lc_gmt":"-5","lc_erg":"Comments are currently unavailable. Try again later.","lc_det":"Comments are unavailable on this page.","lc_pgf":"{0} of {1}","lc_1ach":"Comment","lc_ach":"Comments","lc_newm":"Newest","lc_oldm":"Oldest","lc_bestm":"Best","lc_worstm":"Worst","lc_mixedm":"Controversial","lc_prv":"Previous page","lc_nxt":"Next page","lc_pageNumTooltip":"Enter a page number, and then press the Enter key","lc_first":"First page","lc_last":"Last page","lc_rpl":"Reply","lc_rbs":"Report","lc_edt":"Edit","lc_del":"Delete","lc_pstthanks":"Thanks for posting to","lc_pstand":"{0} and {1}","lc_seemore":"More","lc_seeless":"Less","lc_rpttxt":"Thank you for reporting.","lc_msg2mod":"Send note to moderator"¦","lc_cc0":"Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates the","lc_cc1":"Code of Conduct","lc_cc2":"please use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.","lc_cat":"Categories","lc_spa":"Spam","lc_che":"Child pornography or exploitation","lc_pro":"Profanity, vulgarity or obscenity","lc_cor":"Copyright infringement","lc_har":"Harassment or threat","lc_usrpic":"Inappropriate user picture","lc_oth":"Other","lc_abc":"Additional comments","lc_opt":"(optional)","lc_atl":"100 character limit","lc_rep":"Report","lc_1hourm":"1 hour ago","lc_1minm":"1 minute ago","lc_recomm":"You recommend this","lc_recomdontm":"You don\u0027t recommend this","lc_voted":"You have voted on this","lc_suicide":"Threats of suicide","lc_joi":"Be the first to comment","lc_shwm":"Show comments","lc_hidem":"Hide comments","lc_hourm":"{0} hours ago","lc_minm":"{0} minutes ago","lc_secm":"{0} seconds ago","lc_add":"Add a comment","lc_dmg":"Are you sure you want to delete this comment?","lc_dok":"Delete","lc_dca":"Cancel","lc_pna":"There\u0027s a problem creating posts right now. Please try again later.","lc_clt":"This discussion is closed. New comments cannot be posted.","lc_fta":"Be the first to comment","lc_fsg":"Be the first to add a comment. To add a comment, please","lc_sgn":"sign-in","lc_lnk":"Read comments","lc_spell_gen_err":"Could not check spelling. Please try again later.","lc_spell_no_mist":"No spelling errors found.","lc_spell_num_mist":"Spell check detected {0} mistake(s).","lc_spell_in_prog":"Spell check in progress...","lc_spell_check":"Check Spelling","lc_post_gen_err":"There's a problem creating posts right now. Please try again later.","lc_post_long":"Post cannot be longer than {0} characters.","lc_post_empty":"Your post cannot be empty.","lc_cmnt_day_max":"You already reached the daily limit for posts today. Please post again tomorrow.","lc_post_prog":"Post in progress...","lc_post":"Post","lc_save":"Save","lc_not_auth":"You are not signed in.","lc_no_suggest_paren":"(No suggestions)","lc_ignore_paren":"(Ignore)","lc_insrt_emot":"Insert Emoticon","lc_cancel":"Cancel","lc_ok":"OK","lc_fmt_quote":"Format as Quote","lc_incr_indnt":"Increase Indent","lc_decr_indnt":"Decrease Indent","lc_bullets":"Bullets","lc_numbering":"Numbering","lc_italic":"Italic (CTRL+I)","lc_bold":"Bold (CTRL+B)","lc_post_dirty":"Edits you have made to your post will be lost.","lc_rte":"Rich Text Editor","lc_ip_banned":"The computer or device you are using is temporarily banned from posting on this site. People or automated programs have recently used this computer or device to create unwanted posts. You may still browse the site and read other people's posts, but you can't create, edit, or delete posts.","lc_chk_msg_spell":"Check message for spelling errors (F7)","lc_post_msg":"Post this message (CTRL+ENTER)","lc_perm_ban":"This Windows Live ID was banned for violating the Code of Conduct. You may still read other people's posts, but you can't create, edit, or delete posts.","lc_temp_ban":"This Windows Live ID is banned from posting on this site until {0}. You may still read other people\u0027s posts, but you can\u0027t create, edit, or delete posts.","lc_also_pst_fb":"Facebook","lc_also_pst_wl":"Windows Live","lc_also_post_to":"Also post to:","lc_idnt_settings_err":"Could not save your settings. Try again later.","lc_idnt_nick_prohibited":"The nickname you requested is not allowed. It may contain a reserved name or profanity. Please enter another nickname.","lc_idnt_nick_unavail":"The nickname you requested is not available. Please enter another nickname, or select one of these suggestions:","lc_idnt_nick_empty":"Nickname cannot be empty","lc_idnt_nick_max_len":"Nickname cannot be longer than {0} characters","lc_idnt_nick_allowed_chars_err":"You nickname may only contain letters, numbers, hyphens, underscores, and periods. Please enter another nickname.","lc_idnt_lnk_msn_wl":"Link your MSN posts to your profile on Windows Live","lc_idnt_posting_name":"Now when you post with your \u003cstrong\u003ename\u003c/strong\u003e, all of your past and future MSN posts link to your profile on \u003ca href=\"{0}\"\u003eWindows Live\u003c/a\u003e so your friends can read them.","lc_idnt_posting_nick":"If you keep posting with your \u003cstrong\u003enickname\u003c/strong\u003e, your posts aren't connected to your profile on Windows Live.","lc_idnt_name_nxt_psts":"The name you choose appears next to all of your past and future MSN posts.","lc_idnt_post_w_name":"Post with my name","lc_idnt_kp_post_w_nick":"Keep posting with my nickname","lc_idnt_chs_name":"Choose the name that appears next to your posts","lc_idnt_name_lnk_wl":"If you post using your name, your posts link to your profile on \u003ca href=\"{0}\"\u003eWindows Live\u003c/a\u003e so your friends can read them.","lc_idnt_nick_no_wl":"If you create a nickname, your posts are not publicly connected to your profile on Windows Live.","lc_idnt_post_w_nick":"Post with a nickname","lc_idnt_enter_nick":"Enter nickname","lc_idnt_post_w_yr_name":"Post with your name","lc_idnt_mst_use_name":"You must now use your name when you post here.","lc_idnt_note_post_w_name":"Note: When you post using your name, your posts link to your profile on \u003ca href=\"{0}\"\u003eWindows Live\u003c/a\u003e so your friends can read them.","lc_continue":"Continue","lc_idnt_create_nick":"Create a nickname","lc_idnt_nick_nxt_pst":"Your nickname appears next to your posts on MSN.","lc_idnt_nick_allowed_chars":"Nicknames may contain letters, numbers, hyphens, underscores, and periods.","lc_cmnt_unavail":"Commenting is currently not available. Try again later.","lc_loading":"Loading...","lc_signin":"Sign in","lc_signin_create":"Sign in with your Windows Live ID, or create a new one.","lc_spam_msg":"Your post was blocked because it has a hyperlink or appears similar to spam. Please revise your post and try again.","lc_wrt_cmnt":"Write a comment...","lc_avtr_pic":"User Picture","lc_edit_cmnt_err":"Could not load comment for editing. Try again later."},"isCommentShow":"true","_p":"","locale":"en-us","forumId":"00120065-0000-0000-0000-000000000000","forumTitle":"MSN Money","boardId":"00000065-02a6-0000-0000-000000000000","boardTitle":"ArticleComments","threadId":"b3450bb8-bb5b-4f58-a0e0-25dbc2a12050","title":"Article Comment","userId":"b5e44170581cc833","contentId":"cphs222y4n3j07quy5h0bgq9kvkhcge6","pageUrl":"http://money.msn.com/investing/5-signs-a-santa-rally-is-not-coming-investorplace.aspx","appUri":"http://social.msn.com/boards","cssBaseUrl":"unused","emoticonBaseUrl":"http://us.social.s-msn.com/s/","responseBridgeUrl":"http://money.msn.com/ResponseBridge.aspx","cmntSharingOn":true,"cmntSharingNetworks":[{"id":0,"locKey":"lc_fb","tooltipLocKey":"lc_also_pst_fb"},{"id":1,"locKey":"lc_wl","tooltipLocKey":"lc_also_pst_wl"}],"omniAccount":"MSNPORTALSCP","currentPage":1,"totalPages":1,"sortOrder":0,"isAuth":false,"signInUrl":"https://login.live.com/login.srf?wa=wsignin1.0&rpsnv=11&ct=1322043579&rver=6.1.6195.0&wp=MBI&wreply=http:%2F%2Fmoney.msn.com%2Finvesting%2F5-signs-a-santa-rally-is-not-coming-investorplace.aspx&lc=1033&id=250710","genericAvatarUrl":"http://us.social.s-msn.com/s/images/bluemann.png","settingsCookieDomain":"msn.com"}, false, true, true); });DATA PROVIDERSCopyright © 2011 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Telekurs.
Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.
$.dap("&PG=INVIHP&AP=1089",300,250,"dapAd2");FeedbackRECENT QUOTES/*WATCHLIST/*Learn MoreView full page SymbolLastChangeSharesWhere's my list|Update quotes|Clear this listQuotes delayed at least 15 minSponsored by:$.dap("&PG=INVSRQ&AP=1025",120,30,"quotead");MARKET UPDATEUSINTERNATIONALNAMELASTCHANGE% CHANGEThere's a problem getting this information right now. Please try again later.NAMELASTCHANGE% CHANGEThere's a problem getting this information right now. Please try again later.[BRIEFING.COM] Debt and macro concerns continue to underpin pessimism among market participants, prompting many to pare risk. As such, the broad market logged its fourth straight loss. ... More
More Market NewsStock TickerStory StocksIn PlayShort StoriesCurrenciesNAMELASTCHANGE% CHANGEThere's a problem getting this information right now. Please try again later.See more currenciesSponsored by:$.dap("&PG=INVSMS&AP=1025",120,30,"AdSponsor-summary");RECENT ARTICLESWhile top bank fiddles, Europe burnsAre tech stocks the new safe haven?5 signs a Santa rally isn't comingIn scary market, miners show mettleTime to buy into China and Brazil?JIM JUBAKWhile top bank fiddles, Europe burnsTime to buy into China and Brazil?5 stocks for the solar surgePolitics is Europe's real problemFed's next rescue is ready to rollMORE FROM BINGWho can check your credit report?Great holidays gifts for under $25The hidden costs of a divorceForecasting the markets for 2012Do you need pet insurance?The secrets of supersaversMUST-SEE ON MSNREAL ESTATEBest and worst performing housing markets
Fatherhood may help tough guys straighten out15 companies hiring for the holidaysBing: Meet a garage sale millionairePrivacyLegalAdvertiseMSN WorldwideHelpAbout our adsFeedbackSite MapRSS© 2011 Microsoft/* ({0})",msgr:"a.msgr",maxcount:9999,axob:"MSNMessenger.Hotmail2Control"});a(b).channelheaderflyout({delay:{open:500,close:50}});a("a.inbox").hotmaillivemenu({hotmailcalendertext:"Calendar"});a("div.websearch2").togglesearchtext({searchInputBoxId:"q4"});a("div.websearch2 form").bindSearch2();a(".myhp").setHomepage({url:"http://www.msn.com",txt:"Make MSN your homepage"})},a.jsUrl)})})(jQuery);jQuery("a.openpopup").async("openPopup");(function(a){a(function(){a.async("asyncCanary",function(){a(".ptnrcnt1").partnerhostedcontentfeature()},a.jsUrl)})})(jQuery);(function(a){a(function(){a.async("asyncCanary",function(){a.lazyLoad.timeout=6e4;a.cookie+=";MUID=";a(".cogr.coss").slideshow({delay:7e3});a(".cogr.cotb").tabGroup({hover:{delay:300}});a("div.ivideo").async("inlinevideo",[{param:{windowless:"true"},asyncp:1}])},a.jsUrl)})})(jQuery);jQuery("a.opennew").async("openNew");jQuery(".pageoptions1").async("pageOptions");jQuery(".pageoptions1 #ausug").async("autoSuggest",[{helpLinkText:"What is this popup",helpLink:"http://help.live.com/help.aspx?project=wl_searchv1&querytype=keyword&query=sihggus&mkt=en-US",formCode:"MSMONY",openNew:"0",market:"en-us",cookieDomain:null,cookiePath:null,inputId:"q4"}]);jQuery(".quotesearchbar0").async("quoteSearchBar");jQuery(".quotesearchbar1").async("quoteSearchBar");jQuery(".quotewatchlist0").async("quoteWatchList0");jQuery(".recentquotes0").async("recentQuotes0");jQuery(".stkscoutrating2").async("financefundamentals");(function(b){var a=b("#nav .breaknews1");if(a.text().length==0)a.css("display","none")})(jQuery)//]]>/*/*/*Here are five signs that the so-called Santa rally will not happen this holiday season:
In a 2009 column on this year-end phenomenon, columnist Mark Hulbert crunched numbers and found that December's "average" strength fails to account for severe volatility. "That's sort of like the man whose head is in the oven and whose feet are in the freezer and who, on average, feels just fine," Hulbert wrote.
Yes, the market generally goes up. How else did we get from Dow 2,500 in 1991 to Dow 11,500 now? And generally the market also goes up more in December. Since 1896, the Dow Jones Industrial Average ($INDU)has tacked on an average 1.2% each December compared with 0.5% gains averaged in the other 12 months.
But that's not entirely fair. Taking each month separately, June and July have slightly better average monthly returns than December -- so much for another market truism, "sell in May and go away!"
In short, investing based on generalizations is a dangerous tactic. Try selling investors on that "average" long-term performance of the Dow right now, and you probably will get laughed out of the room. Why would you manage your portfolio in December based on the same flawed logic?
The sovereign debt crisis in Europe and the failure of the U.S. congressional supercommittee are stark demonstrations of political gridlock and intransigent citizenry on both sides of the Atlantic.
The lore of the Santa Claus rally
That brinksmanship and dangerous rhetoric appear to be spooking the market, just as did the debt-ceiling debate over the summer that ultimately resulted in a downgrade to the U.S. credit rating and caused the market to plunge 15% in late July and early August.
Too many big issues are at play this holiday season for the markets to get their typical break from big news, and more bad headlines could further sour attitudes on Wall Street. The pain of the supercommittee's failure is already being felt, and even if the eurozone can break through its current spiral of debt-related problems, the market might react even more severely in the days before any such deal is struck.
Continued on the next page. Fund mentioned: iShares MSCI Brazil Index (EWZ).
My best friend ,she just has announced her wedding with a m‘illionaire man who is a celebrity !they met via .Millionαirel○ving.C0M ..it is the largest and best club for c’elebrity and their admirers to chat online.You do not have to be rich or famous. ,but you can meet one , It's worthy a try,Maybe you wanna check it out or tell your friends!
That brinksmanship and dangerous rhetoric appear to be spooking the market, just as did the debt-ceiling debate over the summer that ultimately resulted in a downgrade to the U.S. credit rating and caused the market to plunge 15% in late July and early August.
Yep .. and the USPS is closing the post office just down the road from Santa's house too..
Copyright © 2011 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Telekurs.
Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.
[BRIEFING.COM] Debt and macro concerns continue to underpin pessimism among market participants, prompting many to pare risk. As such, the broad market logged its fourth straight loss. ... More
Best and worst performing housing markets
Read Full Article »