Remember when I TOTALLY predicted this would happen?
From FZ Daily on November 24th, 2021:
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Did you know?
Historically, Black Friday marks the start of a short downturn in the markets while investors tax-loss harvest (i.e. sell) before the end of the year.
Then in the last week of December, we usually get a “Santa Claus Rally” when investors buy because stocks are at a discount from all the selling earlier in the month.
(This is not full proof and there are lot of exceptions, so please don’t trade on something as silly as this. It’s just for fun.)
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Well sho ’nuff – the S&P 500 dropped 2.5% from November 24 to December 20.
And since last Monday it’s rallied 3.9% and is now 2.1% higher than it was on November 24.
So what’s the lesson? To trade the Santa Claus rally every year?
ABSOLUTELY NOT!
(I better NEVER catch you trading on something as dumb as The Santa Claus Rally (or the “Super Bowl Indicator” or “Sell In May And Go Away”, etc.).
The lesson is that there are an infinite number of investing and trading strategies in the world.
And like the Santa Claus Rally this year – they all work… sometime.
But knowing which one will work when is impossible. The times they are right won’t outweigh the times they aren’t.
The only investing strategy that’s proven to work time and time and time again is to GET INVESTED and STAY INVESTED.
