There is an exception: small-cap U.S. stocks. Interestingly, they may be last on Santa’s list, but may benefit from a January effect, instead. Otherwise December’s returns are better in the “Nice” column for every market.
Naturally, that begs the question of how the markets have been doing. This is answered in final column of Exhibit 2 – and the good news is that every each market is showing positive return year to date. So, pat yourselves on the back and tuck into your Christmas parties! Let’s raise a glass to momentum and seasonality. And hope Santa has noticed.
This article was written by Tim Edwards, director, index investment strategy, S&P Dow Jones Indices.
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