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Market Update| December Rally| December 13, 2021

Clinton Orr - Dec 13, 2021
It is nice to know the historic trend for this time of year is positive, a bit of wind in our sails as we approach year-end.

Christmas is less than 2 weeks away! Usually, for me, it is a mad dash in the final days before Christmas to finish my shopping and put up the last-minute decorations. However, 2021 has been a welcome change of pace, our shopping is essentially done, the house is decorated, and this past weekend Jodi and I got our Christmas tree. We are looking forward to some holiday cheer with friends and family.

The financial world has also been positive in December. The market experienced a pullback of about 5% near the end of November, because of that pullback November was a down month. The turbulence lasted about 11 days. In the span of about 7 days the stock market has bounced back. The start of December has been strong.

Historically we see an uptick in the market as the end of December approaches, sometimes this is referred to as the Santa Claus rally. Ryan Detrick of LPL Research looked at the performance of the S&P 500 in the month of December over the last 70 years. The data shows a noticeable uptick in the later part of the month. Ryan summarized the data in the chart below:

I think it is prudent to take this type of seasonality data with grain of salt. It shows us what a typical December for the market looks like, but not every December will be typical. However, it is nice to know the historic trend for this time of year is positive, a bit of wind in our sails as we approach year-end.

As always, if you have questions or would like to review your plan, please let us know. We are happy to help.

Take Care,

Clinton