Santa Claus Rally
A Santa Claus Rally is a rise in stock prices between Christmas and New Year's Day. The cause of a Santa Claus Rally could be attributed to 1) Tax Loss Harvesting, 2) an upbeat holiday sentiment, 3) Christmas bonus investments, 4) quarter-end Window Dressing and/or 5) the January Effect anticipation. The January Effect, which is a rise in stock prices in the month of January, is similar to the Santa Claus Rally in that the January Effect could also be attributed to Tax Loss Harvesting and/or Christmas bonus investments.
