Let’s take a closer look at what happens when things don’t go according to plan. Remember, Yale Hirsch told us, “If Santa should fail to call, bears may come to Broad and Wall.” This is because the New York Stock Exchange is at the corner of Broad and Wall Streets.
Going back to the mid-1990s, there have been only six times Santa failed to show in December. January was lower five of those six times, and the full year had a solid gain only once (in 2016, but a mini-bear market early in the year). “Considering the bear markets of 2000 and 2008 both took place after one of the rare instances that Santa failed to show makes believers out of us. Should this seasonally strong period miss the mark, it could be a warning sign,” explained Santa Claus believer Detrick.
We wish everyone a great end to 2021 and happy holidays!
Ryan Detrick is Chief Market Strategist for LPL Financial.