A surge in the price of stocks that often occurs in the week between Christmas and New Year's. There are numerous explanations for this phenomenon, including tax considerations, happiness around Wall Street, people investing their Christmas bonuses and the fact that the pessimists are usually on vacation this week.
Investopedia Says:
Many consider the Santa Claus rally to be a result of people buying stocks in anticipation of the rise in stock prices during the month of January, otherwise known as the January effect.
Related Links:
From Santa Claus rallies to evergreen loans, Wall Street can be a veritable winter wonderland for investors. The Frosty, Festive World Of Investing
Put one of these unique offerings under someone's tree this year. Holiday Gifts For Financial Geeks
Here's our investing adaptation of an old holiday classic. 'Twas the Night Before Christmas


