Singapore-based financial blog that aims to educate people on personal finance, investments, retirement and their Central Provident Fund (CPF) matters.

Tuesday, 15 December 2015

The Christmas Stock Market Rally

December is the month of the Stock Market!

MORE LINKS
Accrued Interest More than Housing Profits?
What CPF means for those in their 20s?
5 Financial Things to do in your 20s
Singapore Finance Minister on Personal Finance Part 2
Reducing CPF Housing Accrued Interest

https://www.cnbc.com/2015/11/30/86-years-of-history-point-to-year-end-rally.html

December has been a time where the market has never performed worse than any point in the year.
December also has a history of posting gains from the start of the month to the end of the month over 86 years.
When the market starts the month of December above the 200-day Moving Average and in an uptrend, there is an 80% chance for the market to gain 2%.
December is also the month that frequently sees the expansion in valuation (rising P/E, P/B etc).
So seasonally, December is the month to invest in the market.

With S&P500 priced at 2102 on December 1st, there is a very high chance of S&P500 ending the year in more than 2150.
Considering that currently, the price of S&P500 is at 2020+, it is a pretty good entry point.
The S&P500 is also down 1.85% year-to-date, we shared an article that mentioned that 2015 will be a good investment year, read up here why (LINK)
Of course, the US Fed is expected to raise rates next week, which might create a little turmoil in the markets, but if you can hold and ride through the week, historically, the odds are in your favour!

As Warren Buffett always says: "Be greedy when others are fearful and fearful when others are greedy!"

Disclaimer: I am not suggesting any claims that the market will rally. I am only stating that the historical trends point that there might be a rally. It is by no means any form of recommendation to purchase stocks in the market. Investors are recommended to do their own assessment of what they should or should not invest in.


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2 comments:

  1. I do hope there will be a Christmas stock market rally.

    ReplyDelete
    Replies
    1. Hi,

      I hope so too! Let's hope the Fed's decision to raise rates in the December is a wise and correct one (which I think it is )

      Delete