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Posted on 19 Apr 2011 | 6,138 views
The Santa Claus Rally is Also Known as the December Effect in the Stock Markets

The Santa Claus Rally is a phenomenon where stock prices in the month of December, generally seen over the final week of trading prior to the new year. The rally is generally attributed to anticipation of the “January Effect“, an injection of additional funds into the market, and to additional trades which must, for accounting and tax reasons, be completed by the end of the year. The Santa Claus rally is also known as the “December Effect.”