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The Santa Claus Rally Explained:
There are many market anomalies that investors have historically tried to take advantage of to improve their returns or predict what the future would hold. Most of the time these anomalies were not significant or reliable enough for the everyday investor to benefit from. However, the Santa Claus rally appeared to be one that would break the mold and deliver investors reliable returns. However, in recent years the phenomenon has lost some of its steam. Today we look at the history of the Santa Claus rally, discuss the possible reasons for its existence, and what (if anything) we as investors should do each year to prepare for it or follow it up.

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