On Dec. 23 local time, US stocks closed lower for three straight weeks, the longest losing streak since September. Christmas has arrived and the US stock market has yet to show a rebound trend. Some investors have a negative attitude towards this year’s “Santa Claus market”.
The “Santa Quotes” refer to the last five trading days of the year and the first two trading days of the new year. Historically, since 1969, the S&P 500 has risen an average of 1.3% during the seven-day “Santa Rally.”
Sarat Sethi, managing partner and portfolio manager at DCLA, said there will be no “Santa Claus market” this year. Howard Marks, founder of Oaktree Capital, also said the stock market is going through historic “major changes.” Since 2008, 2009, the world’s central banks have taken strong measures against the treasury and solved the global financial crisis. “We’ve been living in a very active, healthy and profitable environment for about 14 years and I don’t think that will necessarily continue,” Marks said.
In December, a “historically strong” month for US equities, the S&P 500 lost about 6%. The S&P 500 is down nearly 20% so far this year and is on track for its worst annual performance since 2008.
US Stocks Keep Closing! “Santa Claus Quotes” is a bit hopeless. Click on the video to see it!
