But it’s not just December, it’s the last couple of months of the year that you tend to see solid performance. The chart below shows the seasonal tendency by business day for the S&P 500 from 1990-2015, and maps out how 2016 is tracking against that historical pattern. Interestingly enough for the most part it’s been tracking reasonably closely to its seasonal pattern.
It’s important to remember those exceptions. Seasonality can be a useful piece to the puzzle, but there are always exceptions. It works better if seasonality lines up with other evidence that confirms the overall case so thatseasonality is a conviction building tool rather than a core thesis.
Finally, I’ll leave you with this fun chart of Google search trends by month for Santa Claus rally…
I’m sure many investors will be searching for a Santa Claus rally to fill their stockings!
This article originally appeared onSeeitMarket
Canyon Distressed Opportunity Fund likes the backdrop for credit
The Canyon Distressed Opportunity Fund III held its final closing on Jan. 1 with total commitments of $1.46 billion, calling half of its capital commitments so far. Canyon has about $26 billion in assets under management now. Q4 2020 hedge fund letters, conferences and more Positive backdrop for credit funds In their fourth-quarter letter to Read More