A post from our Seasonal Indicator blog that is dedicated to discussing the seasonal tendencies of the market.
The S&P Dow Jones Indices company has confirmed that Santa truly does deliver internationally. Academic studies have long found the same seasonal patterns that exist in the US also exist in most of the major stock markets globally with one exception sometimes noted — Japan. But it seems that Santa truly visits all nations during the month of December including Japan. Tim Edwards, Director of Index Investment Strategy at S&P Dow Jones Indices has confirmed this recently when he developed a simple ratio comparing the percent of December’s returns in each market to the total annual return. The analysis is familiar to our own our The Santa Rally Guide but with an international take, so we were happy to see other sources highlight the market’s holiday tendency. It also confirmed that the small and mid-cap US stocks had stronger seasonal tendencies than the larger S&P 500 companies.
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Categories: TSP Charts