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Santa Claus Rally |
Also found in: Wikipedia | 0.01 sec. |
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Santa Claus Rally Seasonal rise in stock prices in the last week of the calendar year, between Christmas and New Year's Day. Year-End Rally A rise in stock prices that sometimes occurs on the trading days between Christmas and New Year's Day, occasionally extending into the first few trading days of January. Year-end rallies are thought to occur in anticipation of the January effect, which is a rise in demand for stocks resulting from the increased liquidity among investors who closed positions prior to the end of the year for tax purposes. A year-end rally is also called a Santa Claus rally.
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