We’re getting close to what is historically the best time of the year for stocks.
I took all of the historical data for the Dow Jones from 1896 through 2010, and found that the streak from December 22 to January 6 is the best time of the year for stocks. (December 21 and January have also been positive days for the market but only by a tiny bit.)
Over the 16 run from December 22 to January 6, the Dow has gained an average of 3.23%. That’s 41% of the Dow’s average annual gain of 7.87% occurring over less than 5% of the year. (It’s really even less than 5% since the market is always closed on December 25 and January 1. The Santa Claus Stretch has made up just 3.8% of all trading days.)
Here’s a look at the Dow’s average performance in December and January.
Posted by Eddy on December 19th, 2011 at 2:48 pm
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
Named by CNN/Money as the best buy-and-hold blogger, Eddy Elfenbein is the editor of Crossing Wall Street. His free Buy List has beaten the S&P 500 for the last four years in a row. (more)
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