chapter 10
Santa Claus rally
Christmas is always an expensive time of the year, but not for everyone. That’s because the really smart money will have already racked up gains playing the markets during the final month of the year. It’s not a lottery either because December is one of the most profitable months to be invested in equities.
Santa Claus delivers early
In fact, since 1980, the FTSE All-Share Index has risen no fewer than 22 times during the month and only fallen 6 times. That’s a success rate of 75 per cent. Moreover, the average monthly gain is a very healthy 1.99 per cent, even after accounting for those 6 down months. Taking a closer look at the statistics (see Table 10.1), it is apparent that it takes something pretty significant ...
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