The Santa Rally does exist, but is it off the cards for FTSE 100 in 2016?

December 16, 2016 | 4years | Investment News

Once again in 2016, the age-old ‘sell in May and go away' failed, but investors may want to pay attention to another seasonal quirk.

While some may dismiss the Santa Rally along the same lines of ‘sell in May’, research has proven stock markets do get a boost over the festive period.

The FTSE 100 has risen in 26 of the past 32 Decembers, with an average rise of 2.3 per cent during the month. Furthermore, research from fund manager Schroders has shown December is the best month of the year for world markets.

Combined data for the FTSE 100, S&P 500, MSCI World and Eurostoxx indices since 1988 shows that markets have risen in December 75 per cent of the time. The second best month is April, with stock markets posting a 70 per cent success rate.

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