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A rally in the week after the Christmas holiday is common, but has only occurred in two of the previous four years.
The theories for what causes a Santa Claus rally go from trader optimism to year-end tax considerations.
A Santa Claus rally describes a steady increase in the stock market that occurs in the last week of December through the first two trading days in January. There are numerous hypotheses for the causes of this phenomenon. They include:
- Many investors tend to have a general feeling of