This week I heard from a reader with a question I bet is on every investor’s lips.
Q: Michael, Excellent written article … However, I am curious on your “take” as we move into fall and December – What about the notorious “Christmas rally”? ~ James B.
A: James, the S&P 500 has rallied a remarkable 13% in the last five weeks, recapturing all of its summer losses. The Dow Jones Industrial Average jumped by 8.5%, while the S&P 500 soared by 8%, and the Nasdaq Composite Index outdid them both with a 9.38% performance. Even more noteworthy is that the three major indices have done this in the face of unrelentingly poor economic data. (More on that in a minute.)
So it’s no surprise you’re wondering, as we sit here in the first week of November, whether Santa Claus came early or whether the market will keep “melting up” through the end of the year. And I bet you’re not the only one.
Here’s the number I’m looking at…
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