Should we expect a Santa Claus rally this year?
"Santa Claus rally" is the traditional rise in asset prices at the end of December - beginning of January. It is explained by psychological factors (holiday optimism), portfolio rebalancing, and an influx of new funds.
Facts and figures:
A rally is more of a trend than a guarantee. In the US stock market, the last 5 days of December and the first 2 days of January often show growth, but not always. In cryptocurrencies, the statistics are less clear-cut: there have been years of explosive growth (2020, 2021), as well as declines (2022).
What about this year?
Forecasting is difficult due to the influence of macroeconomics, news, and events.
Conclusion:
One should not blindly rely on a rally. Decisions should be made based on market analysis. A rally may happen, or it may not.
What to do?
* Study trends and news.
* Diversify the portfolio.
* Manage risks.
