Santa Claus rally
🎅 According to some sources, Edward Dewey was the first person to notice the *Santa Claus Rally in the stock market.*
📉 *The trading volumes are usually low* as the institutional investors are on leave and the market tends to be volatile as the retail participation increases comparatively.
🤑 In the U.S. *employees receive bonuses* during year end and spend them during the festive season.
⚡ Moreover, the general *market sentiments are also high* that the market will rise during this period.
📃 *A study by IIM-B has confirmed* that the effect is also visible in the Indian markets by studying 8 various indices. They also found that the small-cap companies have outperformed the midcap and large cap companies during this period.
What do you think ?
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