How often do Santa Claus rallies occur?
The phenomenon of the Santa Claus rally was first documented in Yale Hirsch's Stock Trader's Almanac in 1972, meaning that at that time, it was already a noticeable occurrence. In the last 50 years, traders have been keeping a much closer eye on the stock market to see if Santa is going to come and leave a little gift for Wall Street.
Over the last 50 years, Santa Claus rallies have occurred about 80% of the time, averaging about a 1.3% gain during the Santa Claus rally period. This might not seem like much, but remember, this gain is across just seven trading days at the end of the year.